Should You Buy CrowdStrike After Its Recent Stock Split? The Answer Might Surprise You.
CrowdStrike stock has rocketed higher by 70% this year.
Overview
Some companies create so much value over the long term that their stock price rises into the hundreds or even thousands of dollars, making it hard for retail investors to purchase one full share. Companies can rectify this by executing a stock split, which increases the number of shares in circulation and reduces the price per share by a proportionate amount.
At the close of trading on Wednesday, July 1, cybersecurity giant CrowdStrike (NASDAQ: CRWD) executed a 4-for-1 stock split, which reduced its share price from $767 to $194. Splits don't change the underlying value of the company, but it's now much more affordable for investors with small portfolios to buy one full share in this cybersecurity leader.
Details
That said, CrowdStrike stock has already soared over 65% this year, and I think its sky-high valuation could limit near-term upside. Here's why investors might want to think twice before buying it.
Source
Originally published at www.fool.com.