The massive boost from Apple and Tesla’s stock splits is showing signs of running its course.
Shares of Apple fell 2% on Wednesday from their record, while Tesla also slipped from its all-time high, dropping 5.8%. Tesla plunged as much as 14.7% at its session low. The duo has enjoyed huge rallies after the announcements of their stock splits, which aim to lure more interest from regular investors.
Their splits took place on Monday, which sparked another knee-jerk pop in both stocks. Tesla jumped more than 12% that day, while Apple gained more than 3%.
A stock split theoretically could boost retail share ownership as the cheaper stock price is more accessible for individual investors. However, it doesn’t change a company’s underlying fundamentals or the intrinsic value of its shares.