Apple and Tesla’s stock splits go into effect Monday, and Wall Street watchers are split as to the moves‘ lasting impacts.
Apple’s and Tesla’s stocks have officially split. Shares of both companies rose Monday, their first day of trading post-split. Apple shares are up nearly 36% since July 30, when it announced its 4-for-1 split. Tesla’s stock is up almost 76% since its announced its 5-for-1 split on Aug.11. Market watchers are divided on what the splits may mean for Apple and Tesla. Here’s what five of them told CNBC on Monday: Daniel Ives, managing director of equity research at Wedbush Securities, predicted the splits would drive Apple and Tesla higher: „I think this was a smart move by the companies and the board[s] and ultimately I think there’s going to be more stalwarts that follow. And I think right now, they’re just in a position of strength if you see what’s happening in terms of the market, of course on the EV side with Tesla and then Apple going into a supercycle. And this was the smart move at the right time in terms of the stock split and I view it as putting more sort of gasoline in the tank in terms of these stocks moving higher.“ Sarat Sethi, managing partner at Douglas C. Lane, cautioned investors not to buy in simply because of the splits: „I think the idea that you can have more pieces of a pie for the same pie is concerning, especially for long-term investors and I think the ability for some of the retail investors to get in there and trade.
