Digging into Stock Splits Beyond Apple and Tesla
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Stock splits have been en vogue this season since the world’s richest firm, Apple, announced its split details in July. Not to be outdone, perhaps the world’s most talked-about stock, Tesla, did the same in mid-August.
Shares of Apple and Tesla made fresh all-time highs following their respective stock splits announcements earlier this season. Apple’s 4-for-1 split and Tesla’s 5-for-1 split were the buzz of Wall Street. It was the first time since 2014 that Apple split its stock and a first ever for Tesla.
Apple shares gained 40% from late July through the stock split becoming effective on the last day of August. AAPL then corrected earlier this month, falling from a split-adjusted price of $138 to near $110 as volatility mounted. Tesla shares soared more than 80% in the weeks following its stock split news, but then retreated nearly 25% in the days after the 5-for-1 split.