How Stock Splits Affected Performance In Apple, Tesla And More

Amazon AMZN sent investors into a frenzy Wednesday when the company announced its board approved not only a 20-1 stock split, but a $10- billion buyback.

A stock split can improve a company's trading liquidity, making the stock more affordable.

When a stock split occurs, the number of outstanding shares increases, while the price per share decreases proportionately, according to the Investopedia definition of stock splits. The market cap and value of the company do not change. 

While a stock split does not affect a company's operations, it can lead to a change in investor sentiment, and in turn that can lead to a company's change in operations. At the least, a stock split affects the performance of that stock. For example, following Amazon’s announcement, shares were trading 3.75% higher.

What are some other examples of a stock's performance after a split? We’ve gathered a list.

Tesla TSLA Announced a 5-1 stock split in August 2020, completed on Aug. 31.

• Sept. 1, 2020: $502.14
• Dec. 1, 2020: $579.59
• March 1, 2021: $690.11
• June 1, 2021: $627.80

Apple, Inc AAPL Announced a 4-1 stock split in July 2020, completed on Aug. 31.

• Sept. 1, 2020: $132.76
• Dec. 1, 2020: $121.01
• March 1, 2021: $123.75
• June 1, 2021: $125.08

Exxon Mobil XOM Last announced a 2-1 stock split, completed on July 19, 2001.

• July 19, 2001: $43.20
• Oct.19, 2001: $40.29
• Jan. 18, 2002: $38.64
• April 19, 2002: $42.46

During the dot-com bubble, companies like Microsoft and Amazon announced stock splits.

Microsoft Corp MSFT Announced a 2-1 stock split that was completed on March 29, 1999.

• March 29, 1999: $45.06
• June 29, 1999: $43.34
• Sept. 29, 1999: $45.78
• Dec. 29, 1999: $58.47

Amazon.com, Inc AMZN Announced several splits during the dot-com bubble, with the latest being a 2-1 split in September 1999.

• Sept. 2, 1999: $57.50
• Dec. 2, 1999: $86.00
• March 2, 2000: $64.94
• June 2, 2000: $52.38