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Why Some High-Priced Stocks Aren't Splitting Soon - Still Worth Buying

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  Published in Stocks and Investing on Sunday, November 16th 2025 at 21:30 GMT by The Motley Fool

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Why Some High‑Priced Stocks Aren’t Split Soon – and Why They’re Still Worth Buying

The world of equity markets is full of buzz words and headline‑grabbing moves, but one of the simplest and most misunderstood concepts is the stock split. A split is an action taken by a company to divide each existing share into multiple shares, thereby lowering the share price while keeping the market value of the company unchanged. For investors, a split can make a stock appear more affordable, improve liquidity, and even attract a broader base of small‑cap traders. Yet, even as the “split watch” lists keep expanding, a handful of expensive stocks remain stubbornly out of line for a forthcoming split. And surprisingly, many analysts still recommend buying those shares.

Below is a deep dive into why a handful of high‑priced blue‑chip stocks might be the “next‑in‑line” ones, why they’re not getting split yet, and why they may still be compelling investments. The information is drawn from the MSN Money “Stock Split Watch” article and cross‑referenced with corporate filings, analyst reports, and recent earnings releases.

1. What a Stock Split Actually Means

Before we dig into the individual names, let’s recap why splits matter:

That said, a split is not a performance enhancer. It does not change dividends, earnings, or fundamentals. Therefore, an expensive stock can remain expensive if its valuation remains justified by its growth prospects.

2. The Expensive Stock List

The MSN Money “Stock Split Watch” article highlights several heavyweight names whose share price has exceeded $500 per share for an extended period. The most prominent ones are:

A quick scan of the article shows that Amazon, Alphabet, and Microsoft are the three companies that have consistently not performed a split in the last decade, even though they have been trading well above $500 per share for years. In contrast, Apple, NVIDIA, Tesla, and Netflix have executed splits in the past five years to keep the share price within a more “retail‑friendly” range.

3. Why Amazon, Alphabet, and Microsoft Haven’t Split

3.1. Amazon (AMZN)

• Cash Flow and Dividend Policy: Amazon historically eschews dividends, reinvesting earnings into growth and acquisitions. The company’s free cash flow remains robust, and a split would have no effect on the overall capital structure.
• Shareholder Composition: Institutional ownership dominates. Splits rarely matter to large funds, so the incentive to split is lower.
• Strategic Position: Amazon’s growth is tied to its marketplace, cloud (AWS), and media. A split would not accelerate any of those initiatives.

3.2. Alphabet (GOOGL)

• Dual‑Class Structure: Alphabet has two classes (GOOGL – Class A, GOOGL – Class C). The split would need to apply to both classes and could create confusion over voting power.
• Valuation: Alphabet’s valuation multiples (P/E ~ 20–25) remain reasonable given its high growth trajectory and dominance in online search and advertising. The price ceiling is justified by market expectations of future earnings.
• Regulatory Hurdles: The split would need to pass through an SEC filing and a shareholder vote, which can take several months.

3.3. Microsoft (MSFT)

• Historical Split Cycle: Microsoft has a longer split history, but the last split was a 2‑to‑1 in 2003. The company’s share price has stayed below $300 for most of 2024‑25.
• Liquidity and Investor Base: Microsoft has a broad base of retail and institutional investors. A split would not dramatically improve liquidity.
• Dividend Policy: Microsoft now pays dividends, and a split would effectively halve the dividend per share, which could dampen the yield perception.

4. The “Why They’re Still Buys” Argument

Even though these stocks haven’t split, a combination of fundamental and technical factors make them attractive:

Analysts on MSN’s article point out that Amazon’s current P/E (~70) and Alphabet’s P/E (~25) are justified by the pace of expansion in their respective markets. The high share price thus reflects a “premium” for being the industry leader rather than a mispriced undervalued asset.

5. Potential Risks to Watch

Despite the bullish case, investors should keep an eye on the following:

6. A Quick Snapshot of the Top Split‑Watch Stocks

7. Bottom Line

While the “Stock Split Watch” page offers a fascinating look at how many large companies treat price caps, the absence of a split does not inherently mean a stock is a bad buy. Amazon, Alphabet, and Microsoft—each with an astronomical share price—continue to deliver robust fundamentals, impressive cash flow, and a clear competitive moat. Their current valuations, while lofty, reflect the premium investors pay for a seat at the table of the world’s leading technology firms.

If you’re a long‑term investor with a moderate risk tolerance, adding one or more of these names to your portfolio can still be a sound move, even if their shares don’t split in the near future. As always, consider your own investment horizon, diversification strategy, and risk appetite before making any decisions.