Artificial intelligence (AI) specialist Palantir Technologies (PLTR, Financial) has come a long way over the past 24 months, as its stock has climbed around 832%. This rapid ascent came after the company's April 2023 launch of its Artificial Intelligence Platform (AIP)—a completely new suite that completely flipped Palantir's story from one of government dependency into a fierce enterprise software company.
Palantir shares rose 340% in 2024 alone, making them the top performer in the S&P 500. This has also fueled speculation that the company could split its stock, a move that would make it more accessible to retail investors with a lower per-share price without loss in value.
Tech giants like Netflix (NFLX, Financial), Tesla (TSLA, Financial), Nvidia (NVDA, Financial), and Alphabet (GOOGL, Financial) all resort to stock splits from time to time — usually right after their stocks take off. Splits have historically increased trading liquidity and brought a wider investor base as more perceived affordable share prices.
The surge in Palantir's share price at the end of 2024 — which has pushed the company's valuation well beyond $30 billion — has, meanwhile, insulated it from smaller investors spooked by other tech stocks this year. A split could accelerate trading and bring Palantir into line with other tech leaders who have made similar moves.
Despite the fact that stock splits do not change the market capitalization of a company, the psychological impact of such a change is very often the reason for the demand on the part of investors. If Palantir chooses this path, it would be another marker of the tech giant's still-developing trajectory.
