While artificial intelligence (AI) has dominated Wall Street headlines for years, it’s not the only trend investors are paying attention to. In addition to the craze for artificial intelligence, investors can’t get enough of stock split stocks.
A stock split is an event that allows a public company to make cosmetic adjustments to its stock price and number of outstanding shares by the same factors. These changes are superficial in that they do not affect the company’s market capitalization or its operating results.
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While stock splits come in both forward and reverse forms, investors typically flock to the former and avoid the latter. Reverse splits are designed to increase a company’s share price, often to avoid delisting from a major stock exchange. This is a common break-up method for troubled companies.
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At the same time, forward stock splits are designed to make company stock nominally more affordable for investors who are unable to purchase fractional shares through a broker. Most companies that need to make their stocks nominally cheaper for retail investors outperform their peers in innovation and execution.
Additionally, public companies that fall into the forward-looking schism camp have historically outperformed Wall Street benchmarks S&P 500 Indexwithin 12 months of their announcement. That’s why investors often look to Wall Street for the next big stock split.
As we prepare for spring, one stock split stock has soared 27,500% (including dividends) over the past 25 years, so it’s a no-brainer to buy in March. Meanwhile, another ultra-popular stock split is best left in the display window.
While a number of high-profile companies have announced forward spinoffs recently, including the streaming giant Netflix and digital workflow titan Immediate servicea leader in online travel Booking Holdings(Nasdaq: BKNG) This one stood out in March for all the right reasons.
On February 18, the parent company of Booking.com, Kayak, Priceline and OpenTable took the wraps off its fourth quarter and full-year operating results, which included news that its board of directors approved a historic 25-to-1 forward split. As of the trading day of February 26, the stock price was $4,250.26, and a 25-for-1 split would lower the price per share to about $170 while increasing the number of shares outstanding by 25 times. This will make it easier for retail investors to participate in Booking’s continued growth story.
Online travel companies tend to be highly cyclical, which is a good thing from a long-term investment perspective. While economic slowdowns and recessions are inevitable, historically they have been short-lived. With economic growth periods lasting significantly longer than recessions, Booking Holdings is positioned to spend more time expanding rather than navigating choppy waters.
From a more specific company perspective, Booking is a giant in specific international markets. It is a major player in Europe and has experienced significant sales growth in Asia. Its solid market share in both regions has helped it maintain sales growth in the high single to low double digits.
Booking’s connected travel strategy and its incorporation of generative artificial intelligence will also be critical to its future success. Management is leaning towards leveraging generative AI to provide personalized travel recommendations and assist virtual agents with automated responses. Booking aims to capture a larger share of the travel industry by encouraging customers to bundle hotels, car rentals and attractions with flight purchases.
Finally, its valuation is attractive after a pullback of nearly 30%. Booking Holdings shares were purchased at no more than 14 times forecast 2027 earnings, a 41% discount to the average forward price-to-earnings ratio over the past five years.
However, not all stock split stocks are destined to be winners. While Booking Holdings appears to be a real bargain, investors would be better off keeping their distance from the electric vehicle (EV) maker sobriety group(NASDAQ: LCID).
Lucid has one of Wall Street’s most high-profile reverse stock splits of 2025, with the luxury electric car maker completing a 10-for-10 stock split that became effective before trading begins on September 2, 2025. At that time, Lucid’s stock price increased from nearly $2 to nearly $20.
A reverse split makes sense for Lucid for two reasons. First, it is dangerously close to falling below $1 per share – the minimum price required to remain listed on the New York Stock Exchange. Nasdaq exchange. Second, some fund managers won’t buy stocks priced below $5. In theory, the move puts Lucid Group back on the radar of select fund managers.
Unfortunately, the superficial changes in Lucid’s stock price have done little to improve its poor operating results.
and Tesla With the switch from the high-end Model S to the mass-produced and much cheaper Model 3, the time is ripe for Lucid to capture the luxury electric sedan market. However, ongoing supply chain issues, coupled with declining demand for electric vehicles, have led to continued disappointment for Lucid and its shareholders.
When Lucid becomes a public company in the summer of 2021, management expects production to reach 90,000 vehicles by 2024. But the company’s electric vehicle production forecast has dropped to about 9,000 units by 2024. Although Lucid predicted that electric vehicle production would reach 25,000 to 27,000 units in 2026, with mid-point growth of more than 40%, the company has been unable to meet its own guidance.
But for Lucid Group, the most fatal headwind is arguably its balance sheet. Lucid’s working capital continues to dwindle despite ample financial support from Saudi Arabia’s Public Investment Fund. In 2025, the company’s operating activities consumed more than $2.9 billion in cash, and it has accumulated losses of $15.6 billion since its inception.
Lucid’s electric car may be aesthetically pleasing, but its stock certainly isn’t. Here’s the stock split investors can safely avoid in March.
Before you buy Booking Holdings stock, consider the following factors:
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Sean Williams has no position in any of the stocks mentioned. The Motley Fool owns and recommends Booking Holdings, Netflix, ServiceNow and Tesla. The Motley Fool recommends Nasdaq. The Motley Fool has a disclosure policy.
1 Split Stock – Up 27,500% in 25 Years – A No-brainer to Buy in March and 1 Stock to Avoid Originally Posted by The Motley Fool
