A stock split doesn't change a company's fundamentals in theory, but the move will attract retail investors who were otherwise limited to low-dollar stocks, CNBC's Jim Cramer said Wednesday on his \"Mad Money\" show.<\/p>\n
New 'Cohort Of Investors': Apple Inc. (NASDAQ: AAPL) CEO Tim Cook and Tesla Inc (NASDAQ: TSLA) CEO Elon Musk got it right when they announced their respective stock splits, Cramer said.<\/p>\n
The stock \"price tag matters\" with the young generation, and companies need the young demographic investor group to be counted as shareholders, the CNBC host said.<\/p>\n
\"We know what happens after the split,\" he said. \"This new cohort of investors, the ones who love low-dollar amount stocks, will start buying and holding these best-of-breed names rather than the darned penny stocks.\"<\/p>\n
Mega-cap companies are \"ignoring\" the small investor, and Cramer saiddoing so is a mistake. After all, retail investors are often \"more stable shareholders\" compared to hedge funds that are known for offering \"no loyalty,\" he said.<\/p>\n
10 Stocks To Split: Cramer's list of 10 stocks that should be split to attract a broader investor base includes:<\/p>\n
E-commerce and retail giant Amazon.com, Inc. (NASDAQ: AMZN).<\/p>\n
Google and YouTube parent company Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL).<\/p>\n
Casual fast food chain Chipotle Mexican Grill, Inc. (NYSE: CMG).<\/p>\n
Streaming video company Netflix Inc (NASDAQ: NFLX).<\/p>\n
Chip maker Nvidia Corporation (NASDAQ: NVDA).<\/p>\n
Fast growing cloud play Adobe Inc (NASDAQ: ADBE).<\/p>\n
Wholesaler Costco Wholesale Corporation (NASDAQ: COST).<\/p>\n
Home improvement retailer Home Depot Inc (NYSE: HD).<\/p>\n
Social media giant Facebook, Inc. (NASDAQ: FB).<\/p>\n
Tech giant and cloud company Microsoft Corporation (NASDAQ: MSFT).<\/p>\n
Related Links:<\/p>\n
Apple Shares Breach $400 After Tech Giant Announces Record Quarter, Stock Split<\/p>\n
Musk Always Cared About 'The Little Guy' And Tesla Stock Split Shows That: WSJ's Higgins<\/p>\n
2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.<\/p>\n
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Cramer Says These 10 Stocks Need To Follow Tesla, Apple's Lead And Split - Benzinga<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" A stock split doesn't change a company's fundamentals in theory, but the move will attract retail investors who were otherwise limited to low-dollar stocks, CNBC's Jim Cramer said Wednesday on his \"Mad Money\" show. New 'Cohort Of Investors': Apple Inc. (NASDAQ: AAPL) CEO Tim Cook and Tesla Inc (NASDAQ: TSLA) CEO Elon Musk got it right when they announced their respective stock splits, Cramer said Continue reading