Tesla and Apple stock splits give away decent gains to start week

Tesla and Apple stock splits give away decent gains to start the week

Apple and Tesla shares rose amid announcements of their stock splits as Nasdaq nailed their best performance since 2000 jumping 9.6%.

As Apple prepares to roll out iOS 14 this year, as well as the iPhone 12, and Tesla continues to impress its consumers with innovative products, its market shares continue to rally.

In addition, it could be a crucial week for the markets as there will be another jobs report on Friday. Investors will observe what the recent Fed policy shift could mean for the markets in the coming days ahead.

Mixed reaction coming from all sides

Market experts were mixed on what the splits may imply for both tech giants. CNBC was able to gather some insights on these experts.

Daniel Ives of Wedbush Securities and JJ Kinahan of TD Ameritrade were optimistic about the splits and it would drive both Tesla and Apple higher. On the other hand, Leon Cooperman, Omega Family Office chairman and CEO, emphasized that the moves don’t generate a higher valuation.

When a company announces a stock split, it means that they are adding more outstanding shares for the public which will also result in stock prices adjusting. This also leaves the company’s market capitalization remaining unchanged.

Tesla upcoming battery day may make or break its stock price

It seems that the majority of investors are watching closely on Tesla because of Elon Musk’s influence due to his recent milestones for the year from successful SpaceX missions to Neuralink’s groundbreaking brain chip technology.

Additionally, experts have also been looking at Tesla’s upcoming battery day to be a catalyst for either a stock boost or a plunge.

According to CNBC Mad Money host Jim Cramer, he sees a short term dip for both Tesla and Apple but views it as an opportunity to buy more shares once prices stabilize after the stock split.

In addition, Cramer also sees a possible sell on news on Tesla’s battery day once we hit September 22.

The iPhone 12 launch could influence Apple stock

With Tesla’s 5-to-1 and Apple’s 4-to-1 stock splits in effect, market participants are looking into a perfect time to buy both stocks.

A possible major catalyst for the Apple stock to continue its rise back to its highs would be the much-awaited iPhone 12 launch. Some leaks about its camera are already circulating and it seems that people are getting excited about it.

In addition, people are also receiving leaks of the Apple Watch SE as well aside from the iPhone 12 fiasco. While its too early to say if both of these tech giants could dominate this week, traders and investors shall observe what surprises Tesla and Apple have in store.

Featured image courtesy of Jon Rettinger/YouTube Thumbnail

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