Microsoft Stock Split Looms as Share Price Hits Two-Decade High

Microsoft hasn't split its stock in over two decades, with its last split occurring in February 2003 as a 2-for-1. The company's board has a history of splitting shares when they reach certain price thresholds, but it's been more than six years since the stock traded above $50.

The current share price is around $518, which is below the prices at which Nvidia and Broadcom split their shares in 2024. However, Microsoft's board may consider a smaller split to make the shares more accessible to employees or investors.

A stock split would reduce Microsoft's weight in the Dow Jones Industrial Average from about 6% to around 3%, but a 10-for-1 split like Nvidia's might send it closer to the bottom of the index. The Dow is price-weighted, meaning that stocks with higher prices have more influence over the index.

Microsoft's stock has traded above every pre-split price at which the company decided to split in the past, suggesting that a smaller split may be more likely than a larger one. A split would not change what buyers pay for the business, and Microsoft's current price is around 30 times adjusted earnings per share.