The split surge from Apple AAPL and Tesla TSLA appears to have finally run its course. These two stocks had massive run-ups into their respective stock splits on Monday. Retail investors perception of “cheaper” shares drove these equities to continuously new all-time highs.
Today, AAPL and TSLA pulled the Nasdaq 100 lower before the broader market buoyed it. Retail investors were racing to buy these two equities on the implication that its less expensive. The real price tag is valuation, and these two companies are getting pricy.
The sell-off today was justified, and these two equities may be subject to an even larger correction. Be careful buying into these frothy tech valuations.
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