Tesla (TSLA) just announced a five for one stock split that goes into effect August 31.
On the news, shares of TSLA are now up to $1,463 in after-hours trading, and could head higher as we near the split. All in an effort to make stock ownership far more affordable for employees and investors. Buying prior to the split could be a great bet, with shares likely to balloon higher post-split on the EV boom.
“Each stockholder of record on August 21, 2020 will receive a dividend of four additional shares of common stock for each then-held share, to be distributed after close of trading on August 28, 2020,” Tesla said in an 8-K filing, as quoted by Fox Business.
Apple (AAPL) also declared a 4:1 stock split, and declared a cash dividend of 82 cents, payable on August 13. “This is Apple’s fifth stock split since it went public. It also split on a 7-for-1 basis on June 9, 2014; a 2-for-1 basis on February 28, 2005; a 2-for-1 basis on June 21, 2000; and on a 2-for-1 basis on June 16, 1987,” said CNBC.
Shares of coronavirus stocks, including Sorrento (SRNE), Inovio Pharmaceuticals (INO), Novavax (NVAX), and Moderna (MRNA) slipped on news that Russia officially approved a COVID-19 vaccine. While some people cheered the news, others are skeptical considering there is no Phase 3 trial data—a critical step in determining how well the vaccine works. At the moment, no data has been published by researchers and long-term effects and safety still remain unclear.
Shares of Zoom Video Communications (ZM) are falling on news that Salesforce just sold all of its 2.8 million ZM shares in the second quarter. Zoom Video last traded at $231.04 after hitting a high of $275.09 earlier in the week. At the moment, stock is below its 50-day moving average for the first time this year. Investors will be watching to see if the ZM stock can quickly recover or if it’ll break further below its average.
Vaxart Inc. (VXRT) is pushing higher after filing an Investigational New Drug (IND) application with the US FDA. Once granted, the company can begin testing its experimental vaccine on people in a clinical trial. “We expect our upcoming Phase I study to generate data that will further differentiate our oral vaccine from injectable vaccines by substantiating the importance of activating both systemic and mucosal immunity in protecting against COVID-19. We believe that this mechanistic benefit combined with the significant advantages of oral administration to the patient while eliminating the need for cold chain distribution, could make our COVID-19 vaccine an ideal candidate for successful mass vaccination campaigns globally,” said Andrei Floroiu, CEO.
As of this writing, Ian Cooper does not have a position in any company mentioned.