Tesla (TSLA)’s & Apple (APPL) stock split has come into effect today at market open. The incredible run for Tesla and Apple shares continues. The stocks rose again Monday after beginning to trade at a lower, split-adjusted price.
The stock split, however, isn’t the only thing affecting shares. Wall Street can claim some of the credit. Shares of Apple and Tesla rose sharply on Monday, the first day after their recently announced stock splits took effect, as investors continued to pile into the popular names.
Apple advanced 4% and was the best-performing component in the Dow Jones Industrial Average. Tesla, meanwhile, jumped around 10%.
Monday’s gains are just the latest in a string of strong performances since the two companies announced they would be splitting their stocks.
Monday’s gains in Apple and Tesla come amid high volume as smaller traders are able to snap up shares in both companies at a much lower price point than Friday.
Through the first hour and a half of Monday’s session, Apple had traded 82.7 million shares, which is roughly 46% of the stock’s 30-day volume average of 178.588 million. Tesla shares had exchanged hands 37.4 million times, more than half of its 30-day volume average of 73.369 million.
This year, smaller traders have been more actively participating in the market as commission-free online brokerage Robinhood grows in popularity. But Cooperman sees this as a potential sign of being overheated.
For Tesla shareholders, the only change is that the number of stocks owned multiplies by five, but the price of the shares owned is divided by five.
Analyst Dan Ives at Wedbush said as a result of the stock split, he was adjusting his stock price target to $380, which is about 20% below current prices, from $1,900, while maintaining his neutral rating.
Should you buy Apple (AAPL) & Tesla (TSLA) stock?
Yes, you should. Shares of Apple (AAPL) & Tesla (TSLA) appear to be a very good investment option, the Money Midnight Indicator is expecting its price to increase considerably in the next several months. The majority of the metrics point to this investment being highly attractive.
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