Monday, August 31, 2020

Apple and Tesla split and soar

One week ago, Apple stock was at $503.43.  It closed Friday Aug 28 at $499.23.  Over the weekend, it split 4-1 which should make the current value $124.81.  But it soared to $129.75 (as of 8/31/20 at 11am), up 3.96%.  

Also, Tesla closed on Friday Aug 28 at $2,213.40.  It split 5-1 which should make its current value $442.68.  But it soared to $488.28 (as of 8/31/20 at 11am), up about 10%.  The market cap for Tesla is $454.98 billion.  If it gets to $500 billion (and stays there), I will add it to the G8 list.

Note:  Tesla is extremely overvalued. It was at $361.22 on March 18.  The equivalent post-split is $72.24.  It will drop 85% or more during the next "panic" (to use an older term for stock market declines).  But when will the crash occur?  I am not suggesting buying shorts, because the market can remain irrational far longer than you can remain liquid.

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