Network security company Palo Alto Networks (PANW) on Wednesday became the latest tech company to conduct a stock split this year. PANW shares join Google-parent Alphabet (GOOGLE), Amazon.com (AMZN) and Shopify (SHOP) in the midst of a bear market.
In the first day of post-split trading, Palo Alto stock fell 1.3% to 180.58 over stock market today.
PANW stock is down just over 1% this year when the market opens on Wednesday. Palo Alto has a Relative Strength Rating of 88 out of 99 as best possible.
Palo Alto announced a 3-for-1 stock split on August 22.
Of course, earnings estimates for PANW stock suffer.
“To reflect a 3-for-1 stock split, our FY23 EPS grows to $3.14 from $9.42 and FY20 EPS estimates are available,” said Cowen analyst Shaul Eyal. Our 2024 is $3.87 from $11.60,” Cowen analyst Shaul Eyal said in a report.
Meanwhile, Google completed its 20-for-1 stock split after the market closed on July 15. GOOGL stock has fallen more than 6% since then. Overall, Google stock is down nearly 28% this year.
PANW Stocks: Making Stocks More Affordable
Amazon’s 20-for-1 stock split took effect on June 6. AMZN stock is up 3.5% since that day. But Amazon stock is down 24% in 2022.
Shopify completed its 10 get 1 free sale on June 28. SHOP stock is down nearly 7% since the split. Furthermore, Shopify stock is down 76% this year amid a falling tech stock market.
In the long run, the stock splits of Palo Alto, Google, Amazon, and Shopify aim to make the stock more affordable for retail investors.
According to Bank of America, companies that announced stock splits saw their shares rise 25% a year after the announcement. That compares with the S&P 500’s average gain of 9%. But those gains didn’t play out during the bear market.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity, and cloud computing.
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