The stock has soared more than 350% in 2020 - despite its hefty price tag of nearly $1,900 for one share. Chipotle has skyrocketed 45%.Īnd then there’s Tesla. “The proliferation of zero-fee online trading and fractional share ownership have largely rendered irrelevant the dollar value of a company’s share price,” said Julian Emanuel, BTIG chief equity and derivatives strategist.Īfter all, it’s not as if the high prices for one share have scared off that many investors lately. Many investors are also buying passive index ETFs, which provide exposure to the high-priced FAANG stocks without having to purchase individual shares of the companies themselves.

Robinhood is now worth more than $11 billion Photographer: Andrew Harrer/Bloomberg via Getty Images Andrew Harrer/Bloomberg/Getty Images said a new checking account from Robinhood Financial LLC raises red flags and that the deposited funds may not be eligible for protection. iPhone in an arranged photograph taken in Washington, D.C., U.S., on Friday, Dec. The Robinhood application is displayed in the App Store on an Apple Inc. While it’s true that it may be hard to afford one share of Amazon, Robinhood and many other online brokers have launched so-called fractional trading plans that let people buy just a small portion of an individual share. Still, not everyone is convinced that other high-priced companies are going to rush to split their stocks. No reason to split if investors keep buying? That’s not long-term investing,” Betancourt said. “Individual investors are paying more attention to the stock price and not the earnings. That’s because many big mutual funds, hedge funds and pension funds focus more on valuation metrics like how a company is trading based on its expected earnings and sales growth potential as opposed to the share price. Institutional firms don’t really care about the share price.” “A stock split is custom made for individual investors. “Retail investors, after a long hiatus, are gradually coming back to stocks,” said Michael Kelly, global head of multi-asset with PineBridge. (AZO) also have stock prices above $1,000. That could be a bad sign for the epic market rallyīut these are just a few of several well-known blue chip stocks in the S&P 500 that could be ripe for a split. (Photo by Noam Galai/Getty Images) Noam Galai/Getty ImagesĬEOs are selling stock. The fourth phase allows outdoor arts and entertainment, sporting events without fans and media production. NEW YORK, NEW YORK - AUGUST 03: People walk near the Fearless Girl statue and the New York Stock Exchange as the city continues Phase 4 of re-opening following restrictions imposed to slow the spread of coronavirus on Augin New York City. (GOOG)L) issued a new C class of shares with no voting rights. Instead of simply cutting its price, Alphabet The company announced a controversial stock split in 2012. (GOOG)L) also has a high share price, trading at more than $1,500. The e-commerce and cloud giant hasn’t split its stock price in 1999. (AMZN), for example, now trades for nearly $3,300 a share. These mostly millennial and Gen Z traders may not be able to afford many shares of a company with a high stock price. But there’s nothing logical about this market.”īetancourt added that companies may want to lower their price to entice younger investors using apps like Robinhood. “Logically, a stock split does nothing to change a company’s value. “If more super expensive companies follow with splits, the stocks could rocket even higher,” said Daniel Betancourt, a moderator and writer with investing site OptionsSwing. That has investing experts wondering whether similarly high priced stocks - such as Amazon or Netflix - may soon split as well.

Both Apple and Tesla stocks have surged since announcing the splits.

Netflix stock price before split