Broadcom Broadcom (NASDAQ: AVGO) is the first business ready for a cheaper stock split than Walmart. Before being acquired by Avago Technologies (which preserved the Broadcom moniker) in 2016, Broadcom had three stock splits. Avago has never split. Shares of Broadcom closed at roughly $1,339 on April 2.
The AI revolution fuels Broadcom. Last April, the company introduced its Jericho3-AI chip to scale connection in high-compute enterprise data centers and connect up to 32,000 GPUs. Innovation like this is needed to train massive language models and power generative AI.
Broadcom's drawbacks go beyond AI. It's a top wireless chip and accessory supplier for next-generation smartphones. Business and consumer replacement of obsolete wireless devices has kept Broadcom in demand as carriers upgrade to 5G download rates.
Digitization also benefits Broadcom's other operating areas. The company's automotive solutions cover advanced driver assistance systems and next-generation car battery management. Meanwhile, it provides financial services software and infrastructure to promote consumer and staff digital banking.
Broadcom's forward-year P/E ratio of 23.5 is comparable to Walmart's, but its anticipated five-year annualized profits growth rate of 14.4% is higher. Broadcom's PEG ratio is much better than Walmart's.
Meta Platforms Meta Platforms (NASDAQ: META) is the second stock-split firm that is cheaper and smarter than Walmart. Meta hasn't split since going public in 2012 and recently set a record $520 per share
Find out what makes Meta "tick," by examining its social media. In December, Facebook had 3.07 billion monthly active users (MAUs), making it the most frequented social site. Meta's fourth-quarter MAU total includes WhatsApp, Instagram, Threads, and Facebook Messenger, which are also popular. When almost half of the world's adult population visits at least one of your owned properties each month, it's easy to recruit advertisers and command considerable ad-pricing power.
Cash flow is another reason Meta is great. Net cash from operations was $71.1 billion last year, and it ended 2023 with $65.4 billion in cash, cash equivalents, and marketable securities. This war chest affords it financial flexibility for acquisitions and inventions.
Meta Platforms is also trying to lead AR/VR, with CEO Mark Zuckerberg hoping to make it a crucial gateway to the metaverse. Meta appears poised to lead AR and VR, even though its Reality Labs expenditures are years away from representing a major fraction of total sales.
The valuation is appealing when compared to Walmart. Meta's projected P/E of 21 may not seem like a deal, but its five-year earnings growth rate is expected to be 26%! A PEG ratio below 1 suggests an undervalued stock-split candidate.
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