APPLE, TESLA SHARES ZOOM AFTER STOCK SPLITS
High-flying shares of Apple and Tesla surged again on Monday as stock splits took effect and attracted more buying from investors, Noel Randewich and Subrat Patnaik reported for Reuters.
Apple jumped over 4% and Tesla rallied 10%, elevating the electric car maker’s market capitalization to over $440 billion, making it more valuable than companies including Walmart and Johnson & Johnson.
Apple split its stock 4-for-1, while Tesla split its stock 5-for-1, with both companies saying they aimed to make their shares more affordable to individual investors.Robinhood and other brokerages increasingly let customers buy fractions of individual shares, making the benefit of stock splits less obvious than in the past. Splits have become less common.
Just three S&P 500 members announced splits in 2020, down from 12 in 2011, according to S&P Dow Jones Indices. The success of the splits for Apple and Tesla could lead CEOs of other companies with high-priced stocks to consider their own splits.