Microsoft Stock Split Speculation Heats Up Amid $500 Price Tag

Microsoft's stock has been trading steadily above $500 for months, raising questions about whether it's due for a split. The last time Microsoft split its shares was in February 2003 as part of a 2-for-1 split, taking the share price to around $48.

The company hasn't announced any plans for another split, but some investors are wondering if a 10th split is on the horizon after 23 years without one. The Dow Jones Industrial Average is price-weighted, which means Microsoft's influence on the index depends on its share price, not its market value.

A split would lower Microsoft's weight in the Dow from around 6% to as low as 0.6%, making it one of the smallest contributors to the index. However, some analysts believe that a small split, similar to the 2-for-1 splits in Microsoft's past, is more likely than a large 10-for-1 split.

Microsoft's stock price has risen significantly over the years, from around $25 just after the last split to over $500 today. The company's revenue and adjusted earnings per share have also grown steadily, with adjusted earnings per share increasing by 22% in the latest fiscal year.