Apple and Tesla jumped to new highs today after splitting their stocks. Will other big Nasdaq companies like Amazon.com follow?
AAPL rose more than 3 percent and TSLA spiked over 13 percent. Their gains helped lift the the Nasdaq-100 to its ninth record level in the last 11 sessions.
Stock splits excite investors because they reset prices on some of the market’s best-performing names. They lower the cost of individual shares without reducing the value of investors’ holdings. That can make stocks and options accessible to a wider base of traders and increase liquidity.
AAPL divided its shares 4-for-1. An account with 100 shares at $499.23 on Friday had 400 shares worth $124.75 this morning. By the close they were back above $129. TSLA’s 5-for-1 split quadrupled the number of shares and lowered their price from $2,213.40 to $442.68. It was back to $498.32 by the end of Monday’s session.
The positive response to AAPL’s and TSLA’s stock split may be spurring optimism about other big Nasdaq firms. Amazon.com (AMZN) could be the main company to watch because it has the highest share price in the Nasdaq-100. AMZN has also gone almost exactly 21 years without a stock split. (September 2, 1999.) The E-commerce giant has gained about 5,700 percent since then.
Other prominent Nasdaq companies may be similar situations. Here are some other potential names investors may watch:
Shopify (SHOP) provides e-commerce services to small businesses and partially competes with AMZN. It’s gained more than 800 percent in the last three years as it rapidly adds new customers. It’s also partnering with Facebook’s (FB) Shops small-business program. SHOP has never split its stock. Last share price: $1,066.42
Netflix (NFLX) was rising before coronavirus and ripped to new highs after the pandemic fueled demand for its streaming videos. NFLX is up 200 percent in the last three years and has never performed a stock split. Last share price: $529.56
Nvidia (NVDA) is a heavily traded semiconductor stock. It initially rode the wave of graphics and video gaming, and is now shifting toward data centers and artificial intelligence. NVDA has gained more than 200 percent in the last three years. NVDA’s most recent stock split was in 2007. Last share price: $535
Alphabet (GOOGL) has lagged other big Nasdaq companies, but still has a hefty four-figure share price. It’s gained 70 percent in the last three years, and last split its stock in 2014. Last share price: $1,629.68.
Mercadolibre (MELI) is an e-commerce company based in Buenos Aires. It’s up about 350 percent in the last three years and has never split its stock. MELI’s last share price: $1,169.49.
Adobe (ADBE) is a well-known provider of design software. It’s flourished as a go-to name for artists and web designers. ADBE isn’t an actively traded name, but it’s up about 230 percent in the last three years. ADBE’s last stock split was in 2005. Last share price: $514.02
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