Stock split helping bubble?

Intel
rtyuhj

Go to company page Intel

rtyuhj
Aug 12, 2020 8 Comments

I've seen some comments on blind mentioning that tech stocks are overvalued. Stock splitting seems to be boosting the stock price of already overvalued companies (specially Tesla) as everyone is jumping on the ship. Is this helping bubble to grow bigger and bigger? Thoughts?

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  • As Cramer said:
    “This new cohort of investors, the ones who love low-dollar amount stocks, will start buying and holding these best-of-breed names rather than the darned penny stocks.”

    I think there’s a fair amount of truth to this. These stock splits will help drive the market higher, yes, but if the investors are going to be throwing cash in anyway, at least invest and *hold onto a solidified company they can watch grow, as opposed to a zombie company with the trade merely being used as a YOLO
    Aug 12, 2020 0
  • Most stocks are owned by institution investors or funds, they look at PE instead of share prices.
    Aug 12, 2020 4
  • Yeah I hope amazon splits. It would pump up the price so much!

    Really, all tech. Buy some qqq calls. It’s gonna be a rocket ship.
    Aug 16, 2020 0
  • Lyft
    Pullingo

    Go to company page Lyft

    Pullingo
    At least with stock split, the options become more affordable.

    I hope CBOE reintroduce mini-options for high priced stocks
    Aug 12, 2020 0