Chipotle Stock Plummets Following Stock Split: What You Need to Know

Money | June 27, 2024, 11:14 p.m.

Chipotle Mexican Grill (NYSE: CMG) experienced a 5% drop in shares following a 50-for-1 stock split. This highly unusual split led to a surge in share numbers, causing investors to take profits and drive the stock price down. Despite the decrease in price, the intrinsic value of Chipotle stock remained unchanged. This may present an opportunity for investors to capitalize on the temporary weakness in the stock. The company's enduring popularity and strong business model suggest that this decline may be short-lived. The Motley Fool Stock Advisor team advises investors to consider the potential for significant returns with other recommended stocks. Chipotle Mexican Grill remains a solid long-term investment choice.