Apple and Tesla Stock Splits Are Here: Should You Buy the Stocks Now?
The two hot stocks will finally begin trading under their split share prices on Monday. Here’s what investors should know.
Daniel Sparks(TMFDanielSparks)Aug 29, 2020 at 10:21AMAuthor Biohttps://platform.twitter.com/widgets/follow_button.3c5aa8e2a38bbbee4b6d88e6846fc657.en.html#dnt=false&id=twitter-widget-0&lang=en&screen_name=danielsparks&show_count=true&show_screen_name=true&size=m&time=1598716397302https://platform.twitter.com/widgets/follow_button.3c5aa8e2a38bbbee4b6d88e6846fc657.en.html#dnt=false&id=twitter-widget-1&lang=en&screen_name=danielsparks&show_count=true&show_screen_name=true&size=l&time=1598716397309
Few predicted how sharply Apple and Tesla stocks were about to surge when the two companies recently announced plans to split their stocks. Since Apple’s stock split announcement on Jul. 30, shares have jumped 30%. Tesla stock has soared an incredible 61% since its stock split announcement on Aug. 11.
With such big gains, investors interested in these stocks have good reason to reevaluate whether they are still attractive at these higher levels. After all, many new investors are likely considering buying Apple and Tesla stock now, as each of the companies’ stocks will start trading on a split-adjusted basis on Monday. The two stocks will be available at much more affordable prices than they were last week. Let’s take a closer look.
IMAGE SOURCE: GETTY IMAGES.
Understanding Apple and Tesla’s stock splits
What will Apple and Tesla’s stock splits look like on Monday? While we won’t know the exact prices that both stocks will trade at on a split-adjusted basis, we can make a rough estimate based on where the two stocks closed the trading day on Friday.
The stock splits will likely look something like this:
|Stock||Pre-Split Price||Stock Split Calculation||Approximate Post-Split Price|
CLOSING PRICE DATA SOURCE: YAHOO! FINANCE. CALCULATIONS REPRESENT THE AUTHOR’S