Motley Fool
Better Stock-Split Stock: Amazon vs. Tesla
Alphabet likely kicked off the latest round of split actions when it revealed in February that it would carry out a 20-for-1 stock split, which then triggered significant valuation gains and prompted calls for other companies with large, pure-dollar share prices to follow suit. Not long after, Amazon (NASDAQ: AMZN) announced that it would be carrying out its own 20-for-1 stock split, and then news emerged that Tesla (NASDAQ: TSLA) also has plans to conduct another split. Breaking down their respective stocks into multiple shares representing equivalent value won’t do anything to increase the intrinsic value of Amazon or Tesla as companies, but there’s recently been a clear trend of lower pure-dollar share prices leading to a surge in buying activity among retail investors.
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