Investor Alert-Could These Three Hot Tech Stocks Be About To Split

Owning a hot stock can enrich investors in many ways and the more shares investors own, the more money they stand to make. That's why a stock split, which multiplies the number of shares an investor owns or that an investor can buy, always makes big news. Hot tech stocks are prone to splitting when their share price gets excessively high and there is speculation these three tech stocks could be primed for a split.   

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CrowdStrike (Nasdaq: CRWD)

If you've ever surfed the web, you have likely used a website that uses CrowdStrike to keep the site secure. Since its IPO in 2019, CrowdStrike has established itself as one of the world's most recognizable cloud-based cybersecurity companies. Back then, its shares traded for only $34, but today, a share in CrowdStrike will set you back a hefty $336.

CrowdStrike occupies a large market share, largely because it's one of the few cybersecurity companies that provide its services via cloud apps instead of directly installing applications like DVDs. This approach allows Crowdstrike's biggest clients, many of which are tech companies or have extensive Web-based operations, to keep the same service as their operations expand.

Crowdstrike's reputation hit in the summer when it experienced a global outage that knocked some of the world's biggest tech companies offline. Despite that, the company's public filings show that CrowdStrike became profitable in 2024. More importantly, analysts expect this stock's earnings per share (EPS) to grow by over 70% by 2027. If CrowdStrike hits those targets, this stock price may shoot so high that a split becomes a strong possibility.

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MongoDB (Nasdaq: MDB)

MongoDB manufactures database management software that allows companies more options for upscaling or customization. This flexibility lets MongoDB clients store and access their important data in the way that best suits the client instead of having to adapt to the traditional, structured method of database management offered by competing businesses.

MongoDB's IPO was in 2017 when shares in this tech company cost only $24. Today, MongoDB shares have surged to nearly $280 and its compound annual growth rate (CAGR) was 40% from 2018 to 2024. Although the company has yet to turn a profit, analysts at Barclays and Citigroup have recently upgraded their price targets for MongoDB to $345 and $400. If the analyst predictions are correct, MongoDB shares could be primed for a split.

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ASML (Nasdaq: ASML)

Semiconductors are mission-critical components in AI applications and ASML is a global leader in manufacturing lithography systems fo semiconductors superconductors. These systems work by using advanced optics to imprint circuit patterns onto microchips. This Dutch-based company counts some of the world's foremost tech companies, including Samsung and Intel as its clients.

ASML's Q3 2024 report showed a nearly 60% increase over Q3 2023 and company management predicted revenue would exceed $63 billion by 2030. This company has been around since 1995 and its stock has split four times. The last one came in 2007, but ASML's share price has jumped by nearly 1,500% to the current price of $658.63. Another bonus for ASML shareholders is that it pays a dividend of 0.098% ($6.45/share).

Considering this stock's previous history of splitting and its current sky-high share price, it's not hard to imagine ASML getting set for another split at some point in the future. In the meantime, analysts at JP Morgan and Wells Fargo have given ASML a "buy now" rating. The buy-in isn't cheap, but the prospect of earning a dividend and a future stock split makes ASML worth some attention from tech investors.

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