Apple's and Tesla's stock splits could push them 33% higher in the next 12 months, an analyst who looked at 60 years of data says
- Apple's and Tesla's stock prices could surge by about 33% in the 12 months after their stock splits, an analyst said.
- "Tesla and Apple are already two of the best-performing companies on the US stock market and all the evidence suggests their upcoming stock splits could act as a tailwind for the value of their shares," said Adam Vettese, an analyst at eToro.
- eToro analyzed 60 years of data on 10 megabrands that have carried out stock splits and found that, on average, their stock prices climbed by 33% in the year after the split.
- Apple and Tesla are set to carry out stock splits next Monday.
- Visit Business Insider's homepage for more stories.
Apple's and Tesla's stock prices could explode by about 33% in the 12 months after they carry out stock splits, according to one analyst.
The multiasset investment platform eToro analyzed 60 years of data and found that, on average, megabrands that split their stocks saw their share prices surge by a third in the year after the split.
Apple and Tesla are planning stock splits next Monday: Tesla is set to enact a 5-for-1 split, while Apple is set to enact a 4-for-1 split.
"Tesla and Apple are already two of the best-performing companies on the US stock market and all the evidence suggests their upcoming stock splits could act as a tailwind for the value of their shares," said Adam Vettese, an analyst at eToro.
Vettese added: "Retail investors are increasingly engaging with the financial markets, and many see the benefit in investing in the companies who produce products they love and use daily. Tesla and Apple are two such companies."
eToro analyzed the price movements of 10 of the biggest global brands that have carried out a share split in recent years: Apple, Alphabet (Google), Microsoft, Amazon, Coca-Cola, Disney, Samsung, McDonald's, Toyota, and Intel.
Apple has split its shares four times in its history, with those shares rising by an average of 10.4% in the year following the split, eToro said.
eToro said Apple's shares faced dramatic price movements in the 12 months after its June 2014 split, when shares rose by 36.4%. And the stock skyrocketed 58.2% after its February 2005 share split.
It also dived 61% after its June 2000 share split, though this was during the height of the dot-com crash, eToro said.
eToro's analysis of 10 brands that have carried out stock splits
Apple and Tesla have been two of the hottest stocks of 2020.
Tesla's stock has seen a monster rally, exploding more than 850% in the past year. It crossed $2,000 for the first time last week and was worth roughly $2,056 on Wednesday.
Apple has risen more than 70% since the start of 2020. Last week, it became the first US-listed company to hit the $2 trillion market-cap milestone.