Investors may be forgiven for thinking Apple Inc. and Tesla Inc. are about to make stock splits great again, but analysts covering other high-priced names say it’s unlikely other companies will follow suit and revert to an old trend that died out after the financial crisis.
The two high-flying tech companies announced that they will be splitting their stocks in quick succession of another. Apple was the first, revealing at the end of July that it would be issuing a 4-to-1 split. Less than a fortnight later, Tesla said it would proceed with a 5-to-1 split.
The decisions surprised investors because while splits used to be a regular occurrence in the market, they’ve petered out to levels approaching near-zero in recent years. Only two occurred in 2017 on the S&P 500 and prior to Apple and Tesla, only two were announced in 2019. That’s in comparison to the …