2024's Stock Split Phenomenon: Why This Cybersecurity Giant Just Joined the Party

The 2024 stock split craze is more than just a number game

Wall Street has been absolutely buzzing about stock splits in 2024. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite have all reached historically significant milestones—45,000, 6,000, and 20,000 respectively—and a meaningful portion of this rally can be traced back to the excitement surrounding forward stock splits among major corporations.

But what exactly is driving this trend? A stock split allows publicly traded companies to adjust their share price and outstanding share count proportionally, without changing the company’s market capitalization or underlying business fundamentals. While reverse splits exist to boost struggling companies’ share prices, the market has shown a clear preference for forward splits—the kind designed to make shares more accessible to retail investors and employees.

The data tells a compelling story. Research from Bank of America Global Research reveals that companies executing forward splits have averaged a remarkable 25.4% return within 12 months of announcing their split since 1980. Compare that to the S&P 500’s modest 11.9% average annual return during equivalent periods, and it becomes clear why investors pay attention when companies announce these moves.

The 2024 stocks to split included some heavyweight names

This year has been particularly active for stock splits. More than a dozen major corporations have completed forward splits, with prominent AI-driven companies leading the charge. Nvidia, Broadcom, and Super Micro Computer all executed 10-for-1 forward splits, exemplifying how leading technology innovators are opening their shares to a broader investor base.

These aren’t random corporate decisions. Companies that pursue forward stock splits tend to have track records of outperformance and innovation. They’re typically cash-rich, growing businesses that recognize the value in accessibility.

Palo Alto Networks delivers the final 2024 stock split, and the timing matters

Today marks what appears to be the final major stock split of 2024. Palo Alto Networks (NASDAQ: PANW), the AI-powered cybersecurity leader, just completed its 2-for-1 forward split after market close on December 13, with adjusted trading commencing on December 16.

For perspective, this is Palo Alto’s second split since its July 2012 IPO. The company previously executed a 3-for-1 forward split in September 2022. Since going public, Palo Alto’s shares have delivered an extraordinary 2,150% return as of December 11—a performance that reflects relentless execution, innovation, and competitive dominance.

Why Palo Alto Networks continues to dominate

The cybersecurity landscape has fundamentally shifted. As organizations migrate their operations and customer data to cloud environments, the responsibility for data protection has increasingly shifted to third-party security vendors. This creates a constant, mission-critical demand that Criminals don’t pause for market downturns or economic slowdowns, which means the need for cybersecurity solutions remains predictable and steady.

The pivotal moment for Palo Alto came over six years ago when management made a decisive strategic pivot toward software-as-a-service (SaaS) subscription models. While the company maintains its traditional firewall hardware business, subscriptions now represent the growth engine. This shift matters enormously because cloud-native, AI-inspired security platforms are more agile than on-premises solutions, more effective at threat detection and response, and—critically—deliver higher margins while improving customer retention through recurring revenue models.

This predictable cash flow stream enables Palo Alto to execute a consistent acquisition strategy. Since its 2012 IPO, the company has grown through bolt-on acquisitions that expand product offerings and unlock cross-selling opportunities. The result: Palo Alto has successfully attracted enterprise customers willing to commit substantial budgets to security infrastructure.

The numbers here are striking. As of October, Palo Alto served 305 customers generating $1 million or more in annual recurring revenue (ARR)—up 13% year-over-year. More impressively, roughly 60 of these customers (20% of the total) generate over $5 million in ARR annually, representing a 30% increase from the prior-year period. Landing bigger, higher-value customers translates directly to better margins and predictable revenue growth.

What comes next for this momentum

If Palo Alto Networks maintains its execution and strategic focus, investors may witness yet another stock split within the next five years—possibly sooner. The company’s combination of market dominance, financial discipline, and continued expansion into higher-value customer segments suggests the growth story is far from over.

The 2024 stocks to split have collectively sent a message to the market: when mature, well-managed companies undertake forward splits, it often signals confidence in future growth and shareholder returns.