Home Top Movers Why Tesla and Apple are in headlines these days

Why Tesla and Apple are in headlines these days

Tesla (TSLA) and Apple (AAPL) recently grab the attention of investors when the two companies shared their plans of next stock split as they sought to make their shares available to a large number of investors. Over the past 12 months, the shares of both the companies have been performing well, which has been significant and though partly but justifies the decision of stock split. Shares of Apple touched a trading price of $503.43 while Tesla is buoying at $2,050. The stock split will make the individual investors having small amounts to invest able to get their hands on these two bigger stocks easily.

The split stock decision raised many question but couple of them like “How that split would work?” and “How investors would respond before that upcoming split?” are worth discussing.


The 2021 Backdoor Crypto Portfolio (free)

Even if you’re not actively in crypto, you deserve to know what’s actually going on...

Because while leading assets such as Bitcoin (BTC) and Ethereum (ETH) are climbing in value, a select group of public “crypto stocks” are surging right along with them. More importantly, these stocks are outpacing the returns these leading crypto assets aren already producing.

Click here to get the full story… along with our long list of backdoor Bitcoin strategies. It’s free.

Sponsored


How that split would work?

In case both companies coordinated with each around their stock splits, then both will execute the split on same day and that would be August 31. For Tesla, split will form five shares against each of its current share while Apple’s each share will be divided into four shares.

How split would seems to be, depends upon price of the stock just before occurrence of the split. But to get an approximate idea of the incident, one can assume the current price as reference. Holders of Apple’s shares, after the split, would become owner of four $124.37 shares against each Apple share having current price of $497.48. Similarly, the split will make those investors, who currently own Tesla shares of worth $2,050 each, owner of five shares of $410.00.

Investors’ response to split

The news of splits could mislead the new-to-trading investors to believe in that it make the shares of both companies particularly more attractive, as shares of both companies are on the price surge after the announcement. But such a thought is wrongful as companies’ market value will remain same with or without going through a stock split. We could understand it in another way too: as split would not impact the value of shares held by individual investors. They will only be holding more number of shares after the split but at the adjusted prices.

And chances are there for sure that the demand of stock would increase after the split as smaller investors with limited resources are likely to be rushing to grab the shares by forming groups. But the investors familiar with the stock markets trends know that it is only the performance of any business which decides the fate of its stock price in longer term. Therefore a scenario of price hike to an unjustified level coming out of a split would encourage some investors to sell the stock to make profits. And that will be offsetting for rising demand of shares after splits.

One cannot say anything about the trading pattern of Apple and Tesla in weeks to come before splits. But investors are recommended to keep their eyes on the essential business performance, long-term sustainability and valuation of both the stocks during that time.

Get The Best Stocks To Trade Every Day!

Join now to get the NewsHeater.com pre-market morning brief 100% free

Must Read

American Shared Hospital Services (AMS) Stock Continues to Soar Following Unprecedent Volumes Being Traded

American Shared Hospital Services (AMS) stock prices surged by 30.51% as of market close on May 5th, 2021, bringing the price per share up...

James River Group Holdings Ltd. (NASDAQ: JRVR) stock falls during pre-market. Why is it so?

James River Group Holdings Ltd. (NASDAQ: JRVR) stock plunged by 1.67% at last close while the JRVR stock continued decline by 25.74% at last...

Aviat Networks, Inc. (AVNW) Stock Trending Up After Promising Financial Reports for Most Recent Quarter

Aviat Networks, Inc. (AVNW) stock prices were up 3.81% as of market close on May 5th 2021, bringing the price per share up to...

Regional Health Properties, Inc. (RHE) Stock Skyrocketing as Pandemic Regulations Ease Up

Regional Health Properties, Inc. (RHE) stock prices were up a staggering 90.39% during the course of the trading day on May 5th, 2021, bringing...

What Is Getting Alteryx (AYX) Stock To Soar In Premarket Trades?

The shares of Alteryx Inc. (AYX) rose 7.42% to trade at $82.06 in premarket trading at last check. To close Tuesday's trading session at...

Why Stealth BioTherapeutics Corp (MITO) stock is soaring in Pre-Market today?

Stealth BioTherapeutics Corp (MITO) presented the data at the 2021 Association for Research in Vision and Ophthalmology (ARVO) Virtual Annual Meeting, which is collected...

James River Group Holdings Ltd. (NASDAQ: JRVR) stock falls during pre-market. Why is it so?

James River Group Holdings Ltd. (NASDAQ: JRVR) stock plunged by 1.67% at last close while the JRVR stock continued decline by 25.74% at last...

What Caused Nemaura (NMRD) To Rise Today In Premarket Session?

The shares of Nemaura Medical Inc. (NASDAQ: NMRD) were trading 12.12% higher at $12.4 before the bell at last check. Nemaura stock closed the...

Related News

Why Stealth BioTherapeutics Corp (MITO) stock is soaring in Pre-Market today?

Stealth BioTherapeutics Corp (MITO) presented the data at the 2021 Association for Research in Vision and Ophthalmology (ARVO) Virtual Annual Meeting, which is collected...

Vapotherm, Inc. (VAPO) Stock Poised to Recover Following Reports of Promising Q1 2021 Financials

Vapotherm, Inc. (VAPO) stock prices were down by a marginal 1.14% as of the market closing on May 5th, 2021, bringing the price per...

10x Genomics (NASDAQ: TXG) stock slumped in the premarket trading session; here’s why

10x Genomics Inc. (TXG) stock plunged by-9.79% to the price of $165.0 in pre-market trading session. TXG stock has closed previous session at $182.90...

Yellow Corporation (NASDAQ:YELL) stock has plunged in the aftermarket trading session; find out why

At last check, in the afterhours trading session, Yellow Corporation (YELL) stock plunged by-14.23% to the price of $8.2. YELL stock closed previous session...

What is behind the rise of Applied Genetic Technologies Corporation(AGTC) stock in the after-market?

Applied Genetic Technologies Corporation (Nasdaq: AGTC) a clinical-stage biotechnology company that uses a proprietary gene therapy platform to develop transformational genetic therapies for treatment of...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Get The Best Stocks To Trade Every Day!

Join now to get the NewsHeater.com pre-market morning brief 100% free

Get Best Morning Financial Newsletter... 100% Free

Best stocks ideas

Analysts’ Upgrades & Downgrades

Insider Watchlist

Important Earnings

We do not sell or share your information with anyone.

Get The Best Stocks To Trade Every Day!...100% Free

We do not sell or share your information with anyone.

Get The Best Stocks To Trade Every Day!

Join now to get the NewsHeater.com pre-market morning brief 100% free

We do not sell or share your information with anyone.