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Apple And Tesla: Stock Split Magic

Published 08/23/2020, 12:46 AM
Updated 07/09/2023, 06:31 AM

There are a couple of high-flying stocks which have been rocketing higher lately, largely because of looming stock splits. Indeed, they both split on the same day, August 31st. One of them is Apple (NASDAQ:AAPL)………

Apple Chart

And, even more extreme, Tesla (NASDAQ:TSLA):

Tesla Chart

I’m not sure what logic people are applying, thinking that the splitting of a stock means it’ll just keep going higher in perpetuity. I don’t think Tesla has split before, but Apple has a few times. Allow me to share a couple of examples of former Apple stock splits. I have marked them with a circled “S”, such as here:

AAPL Chart

……….and this one………….

Apple Chart

My point is that I think these people are being utterly goofy. The split guarantees zilch.

Latest comments

I thought the stock split meant Tesla could be quoted on the S&P 500 now that it's running at a profit?
Thanks.  We all know the fate of TSLA (with much greater confidence) alongside the entire TFAANG and NQ complex.  None of us know the time when it will happen.  Timing the short trade, my friend, is the key here.
Time to buy deep OTM puts!
When are you planning to short fhem
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