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Alphabet And Amazon Announced A 20-For-1 Stock Split. Is Tesla Next?

By Anna Peel. Originally published at ValueWalk.

Alphabet Amazon Chevron Phoenix Group Sprouts Farmers Markets Vistry 52-Week Lows Financial Markets Shell Buy Signals earnings NYMARKET:SPY worst performing large cap stocks in 2021

As Alphabet Inc (NASDAQ:GOOGL) and Amazon.com, Inc. (NASDAQ:AMZN) announced a 20-for-1 stock split, many are wondering what stocks could split next? 

Searches for ‘What does Amazon stock split mean?‘ have skyrocketed by a massive 3,250% in the past week, while interest in ‘stock splits coming up 2022’ surged by +250% in the past twelve months.


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As the move has gained popularity across large public brands, shareholders and investors are curious about how this move could affect their investment and the next stock splits on the radar.

Alphabet And Amazon Announced A 20-For-1 Stock Split

Over the past 20 years, this tactic has tended to be less popular. However, in the face of the ongoing pandemic, massive companies are employing the strategy in an attempt to make shares more affordable to investors. This means that for every one share held, holders will receive an additional 19.

Scott Sheridan, market expert and CEO of tastyworks comments:

“Stock splits continue to be one of the few remaining enigmas of the financial markets. That said, there is quite literally no change in the value of a position pre-split versus post-split (1 share worth $1,000 has the same value as 10 shares worth $100 each).

Case in point, Apple Inc (NASDAQ:AAPL), possibly the most successful company of this generation, has split its stock three times in the last 20 years (2:1 in 2005, 7:1 in 2014, and 4:1 in 2020), as the value of the company has soared to exceed one trillion dollars in recent months.

While it’s always difficult to gauge which stock might split next, a prerequisite needed for a stock split to even be on the table is a high stock price relative to other stock prices – a price that due to the amount precludes a lot of investors from being able to buy.

In today’s market, and without being privy to any conversations behind closed doors, both CMG (~$1500/share) and COST (~$500/share) could be considering splits in the near future. While some companies might prefer to keep their stock prices high to intentionally crowd out smaller investors, the reliably favorable response by the market to stock splits is almost certainly on the radar for these two stocks”

Could Tesla Be Next?

Scott Sheridan, market expert and CEO of tastyworks comments:

“While the price of Tesla Inc (NASDAQ:TSLA) has skyrocketed since its recent split, the likelihood of it splitting again anytime soon is low. Generally speaking, stocks that have recently split wait several years, if not more, before potentially splitting again, so I wouldn’t sit back and wait for another split to consider an investment in TSLA. That being said, given TSLA’s standing as the industry leader in the EV market for automobiles, its stock price could benefit greatly from an overall, macro landscape that is pushing harder than ever to free itself from fossil fuel reliance. While the short-term outlook for TSLA is unknown, as it always is for all stocks, the longer-term outlook certainly looks promising.”

You’re welcome to use part or all of this comment in an article. If you have any questions, let me know and we can fire them over to an analyst ASAP.


About tastyworks

tastyworks is an online brokerage platform built specifically for options traders. The up-and-coming online broker is a subsidiary of tastytrade, one of the fastest growing online financial networks in the world. tastyworks was designed by the founders of thinkorswim with sophisticated functionality for complicated options trades and strategies in mind. It has a do-it-yourself approach and provides the technology, education, and support to succeed more easily on your own.

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