Cramer Is Wrong: The Stock Split Is Meaningless


Recently, CNBC commentator Jim Cramer took to the air to declare that stock splits matter, and that, in particular,'s plan to split 4-for-1 could send the shares higher.

He's wrong, says Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova in the following video. The Salesforce stock split will only help those who don't fully understand the value of the underlying business. Management, meanwhile, says it wants to split Salesforce stock in order to increase liquidity for issuing equity options to employees (which it already does, in bulk).

As it stands, Salesforce's stock will officially split on April 18. Do you see the stock moving higher in the months following? Why or why not? Please watch Tim's take, and then leave a comment to let us know what you think of Salesforce's business prospects.

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The article Cramer Is Wrong: The Stock Split Is Meaningless originally appeared on

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+, Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.Motley Fool newsletter services have recommended buying shares of The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

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