Apple & Tesla shares surge after stock splits
Apple jumped over 4% and Tesla shot up over 10%, bringing the car maker’s market cap to nearly half-a-trillion dollars.
Tesla split its stock 5-for-1 and Apple split its stock 4-for1, both companies stated they are aiming to make their stock more affordable to individual investors.
Many brokerage firms have introduced “fractional shares” which lets investors own less than a full share. This benefit has made stock splits less common than in the past. Only 3 S&P500 members have announced splits in 2020.
The success of splits for both Apple and Tesla could make this a trend for other companies whose stocks have increased to exorbitant levels.
Apple and Tesla have frequently been the most traded stock in recent weeks with customers overwhelmingly buying.
Tesla’s stock has surged over 70% since its split was announced. Apple’s price has jumped over 30 percent since it was announced in late July. Apple most recent quarterly report also aided in the jump in price.
Apple’s recent split was the first since 2014 and its 5th overall since the stock went public in 1980. Apple’s market capitalization has increased to over $2 trillion and it recently became the most valuable publicly listed company in the world.
Tesla’s stock has jumped over 500% this year, while most of the automobile sector has gone in reverse.