Tesla (TSLA) Shares Rise 12%, Apple (AAPL) Up 3.4% as Stock Split…

While the euphoria related to Tesla and Apple stock split has caught up with investors seeing this as an opportunity to get their hands on the tech stocks, analysts believe this tendency may be somewhat misguided.

The shares of Tesla Inc (NASDAQ: TSLA) has risen by about 12% as the 5-for-1 stock split takes effect. In a complimenting trading session, the shares of Apple Inc (NASDAQ: AAPL) also saw a good uptick by about 3.4% as its 4-for-1 stock split takes effect.

The shares of the two tech giants have seen a good growth run since each of the firms announced their intentions to split their stocks. While Tesla (TSLA) has appreciated by about 70% since August 11, Apple (AAPL) has grown by 32%.

The two stocks have been among the best performers on Wall Street in recent times and the latest growth seen has given a hint to the strategic decision to split the stocks.

As CNBC reported, Apple traded 223.4 million shares, which is roughly 25% more than the stock’s 30-day volume average of 178.588 million. Tesla shares exchanged hands 115.6 million times, well above its 30-day volume average of 73.369 million.

TSLA, AAPL Stock Split: What Experts Say

While the euphoria of the stock split has caught up with investors seeing this as an opportunity to get their hands on the tech stocks, analysts believe this attention may be somewhat misguided.

“Look at Tesla and Apple: Everybody understands that splits don’t create value,” the founder of Omega Advisors told CNBC’s Squawk Box. “My dad once told me if you gave me five singles for a $5 bill, I’m no better off.”

Amid the rise in these company’s stocks, analysts believe that a huge chunk of the trading volume is going to Robinhood, the sensational commission-free trading platform.

“I see signs of euphoria creeping into the market: the IPO SPAC market is one, [and] the craziness in many of the stocks that the Robinhood crowd has latched onto,” Billionaire investor Leon Cooperman said. He added:

“You see a Kodak go from $1.50 to $60 and from $60 to $6 in a very short period of time … and when you look into it, it’s the Robinhood crowd taking it up.”

While there is a precedent suggesting that stock splits usually bring a future growth of about 33%, future performances of these stocks will set its own history.

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