How do analysts think about Tesla's stock split plan?
$Tesla(TSLA.US$ shares up 8% on Monday after requesting shareholder approval for stock split. The split was often cited among one of the reasons that drove the gains.
Here are some initial reactions from fund managers, strategists and analysts:
It's really just adding excitement to its name.
We have the stock ranked buy, so we're optimistic on its performance in the coming 12 months. By the company splitting its shares and introducing its dividend, will now broaden its appeal to income oriented investors.”
—— Sam Stovall, chief investment strategist at CFRA
We have the stock ranked buy, so we're optimistic on its performance in the coming 12 months. By the company splitting its shares and introducing its dividend, will now broaden its appeal to income oriented investors.”
—— Sam Stovall, chief investment strategist at CFRA
A lot of people consider this to be a classic example of market psychology at work. If you look historically over time, most companies do well and perform well -- and in some instances very well -- following the announcement of stock splits.
In a case like this, Elon Musk is absolutely brilliant at market psychology. He's one of the masters of market psychology.
—— Marc LoPresti, managing director of The Strategic Funds
In a case like this, Elon Musk is absolutely brilliant at market psychology. He's one of the masters of market psychology.
—— Marc LoPresti, managing director of The Strategic Funds
Tesla's desire to pursue a stock split doesn't change the fact that its stock is still trading at a valuation completely disconnected from fundamentals.
A Tesla stock split would dramatically reduce the price of Tesla’s stock, which would make it even more attractive to unsuspecting retail investors. This could further fuel the bubble in Tesla’s stock that has been brewing over the past two years.
—— David Trainer, CEO of New Constructs
A Tesla stock split would dramatically reduce the price of Tesla’s stock, which would make it even more attractive to unsuspecting retail investors. This could further fuel the bubble in Tesla’s stock that has been brewing over the past two years.
—— David Trainer, CEO of New Constructs
Is not surprised that the company is heading for another stock split, especially with robust EV demand and the build-outs of the 'flagship Berlin and Austin Giga factories now on a glide path.'
We view Tesla's move following the likes of $Amazon(AMZN.US$ , $Alphabet-A(GOOGL.US$ , $Apple(AAPL.US$ and initiating its second stock split in two years as a smart strategic move that will be a positive catalyst for shares going forward.”
—— Daniel Ives, analyst at Wedbush
We view Tesla's move following the likes of $Amazon(AMZN.US$ , $Alphabet-A(GOOGL.US$ , $Apple(AAPL.US$ and initiating its second stock split in two years as a smart strategic move that will be a positive catalyst for shares going forward.”
—— Daniel Ives, analyst at Wedbush
Source: Bloomberg
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How do analysts evaluate the market?
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Marveller : Thanks for the read!
Dislikes Dems : Good decision Elon make it affordable for the masses.
Pnixx : going the volume route
James loh : Good
69BJS : can't wait for the next split
开心就好btc : The rhythm of cutting leeks
1994CM : Great Time to buy any shares.
72736141so : let's go
72736141so : I'm excited!!
JasonDezmal : great news about financial business and the market