Apple, Tesla Gears for Stock Split

Wall Street’s juggernaut firms prepare to end the month on a positive note with a stock split offering.

Apple will be giving a 4-for-1 offer after six years of hiatus while Tesla’s would be more generous at 5-for-1; the first time since its inception.

The stock split scheme was widely popular during the dot-com bubble but has since lost its appeal to the public. The idea has already fallen into the corporate fashion, analysts say.

In relation to this, Apple’s last split happened way back 2014 along with the launch of its iPhone 6. Today’s move by the trillion-worth firm precedes the launch of the iPhone 12 happening this fall.

Although during that time, only Netflix followed the giant’s lead. The movie-streaming app conducted a seven-for-one split share in 2015.

However, the two technology companies are willing to bifurcate their way away from the mainstream.

The decision came in line with their skyrocketing per share prices experienced in the pandemic-plagued months.

This is to appeal to more individual investors, particularly to new and regular ones, towards a healthier investment environment.

Tesla is Making History, S&P Inclusion Bright

To date, Apple has recorded a 125,000% increase since its initial public offering happened four decades ago.

The Nasdaq-100 frontrunner achieved its second trillion this month, now standing at $2 trillion market cap. It is now the most prominent publicly-traded firm ahead of Saudi Aramco.

On the other hand, Tesla shares spiked by 430% year-on-year, and currently standing at an impressive market capitalization of $417 billion.

After the stock split announcement last August 11, the EV manufacturer’s shares jumped for 61%. It recorded an 8% increase for the week alone.

The company posted an impressive profit in its earnings report last quarter, which came at a time when US auto sales were descending.

The Musk-owned company is the seventh most valuable company in the United States. Analysts note that Tesla has a big chance to get a shot on the S&P 500 index within the year.