, apple splits, banana splits. mm no matter the name or type, the options market can help you dig in without belly aching. professor khouw explains >>> plus, calling all "options action" fans reach into your pocket, grab your phone and tweet us your question @optionsaction. if it's nice we'll answer it on air when "options action" returns. ♪ ♪ ♪ ♪ ♪ ♪ ♪ >>> welcome back to "options action". in case you have not heard tesla is headed for splitsville. that's right, come next monday, a five for one stock split kicks under way. smart viewer, you know what that means for the stock. but what exactly happens to your options when a stock splits? it's a great question. professor mike khouw knows >> so obviously $2,000 per share oftentimes when you see share prices get as high as what we have right now, you see stock splits tesla is going to be splitting five for one at the end of the month, august 31st what that means is what do you have to do nothing. this is going to happen automatically. for every one share that you own

twitter is blowing up on the stock splits my e-mail is blowing up on the stock split. we'll continue that conversation some other time. we have bullish calls coming up. should you bet on these? we'll debate those we're back in two minutes. >>> we're back let's head over to john ford with the headlines >> here is a cnbc news update. the justice department has seized millions of dollars from cryptocurrency accounts used by militant groups. officials describe it as the largest seizure of digital currency related to terrorism. >>> the fbi is joining the investigation into what caused the massive explosion in beirut's port. lebanese officials invited the fbi the take part. the blast killed more than 170 people reaction is coming into israel a spokesman says the uae has stabbed minutes palestinians in back that's our cnbc news update for this hour. back to you. >>> appreciate that. big bets in the casino space >> i'm happy about it. i took off about half the position today just two days ago we had unusual activity in this one again but those options expire friday. i would lo

, apple splits, banana splits. mm no matter the name or type, the options market can help you dig in without belly aching. professor khouw explains >>> plus, calling all "options action" fans reach into your pocket, grab your phone, and tweet us your question @"options action. if it's nice, we'll answer it on air when "options action" returns. nutes until we board. nutes until we board. oh yeah, we gotta take off. you downloaded the td ameritrade mobile app so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪ ♪ ♪ ♪ ♪ ♪ ♪ >>> hi welcome back to "options action." in case you have not heard tesla is headed for splitsville. that's right, come next month a five for one stock split kicks underway smart viewer, you know what tha

, apple splits, banana splits. mm no matter the name or type, the options market can help you dig in without belly aching. professor khouw explains >>> plus, calling all "options action" fans reach into your pocket, grab your phone and tweet us your question @optionsaction. r enn s nice we'll answer it o aiwh "options action" returns. i'm searching for info on options trading, and look, it feels like i'm just wasting time. that's why td ameritrade designed a first-of-its-kind, personalized education center. oh. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now you're binge learning. see how you can become a smarter investor with a personalized education from td ameritrade. visit tdameritrade.com/learn ♪ it's got all my favorite shows turn oright there.boom, i wish my trading platform worked like that. well have you tried thinkorswim? this is totally customi

we know, we know, that splits, stock splits create no value whatsoever they're pure slight of hand. do i have more pencil? stocks are also exactly what we need to help keep this market moving higher like we did today with the dow gaining 290, s&p jumping and the nasdaq 2.13% because apple and tesla gave you fantastic news about what it should be a 4 for 1 and 5 for 1 stock split respectively again, no new value but boy, do people love it there's a reason we have to feed the bull with more nourishing stock blitz and i'll tell you why. years ago individual investors deserted the stock market with the implosion of 2000, 2001 and financial crisis of 2007, 2009 they gave up on the asset class and started tiptoeing back, looked enticing and something would go wrong 2015 mini crashes. but in the past few years, beaten down individual investors, a lot of younger investors intrigued by low to no commissions. finally started buying stocks again. despite all the gray beards telling you it's impossible to beat the market, despite the supposedly brilliant money managers warning you that the worl

now you're going to get apple and tesla with a split adjusted price. you might get a window of opportunity right before the presidential debates to really capture some volatility. i think we could potentially see the market sell off 15-20% now how long does it last? because it really hasn't lasted long but i think at this point the rush into big tech, the rush into the six names, probably very, very long in the tooth. >> you know, bk, i've screwed up i come on here periodically and i say why should the market keep going up i realize it's probably been the wrong question maybe the better question is why should the market go down? everything we've talked about seems to put tailwinds flip it. if you had to make a case why the market will fall, i'm not saying it will, but if you had to make a case why it would, what would be top of the chart >> don't beat yourself up. you're an incredible slouch and nobody's going to deny that. that's a joke from caddy shack for the folks at home. >> be the ball, bk >> exactly the case for volatility coming forward at leas

splitting should be a no brainer after this if a stock splits are meaningless and cost you nothing, if it makes no difference one way or the other to you, why not just give the prospective investors what they want >>> are the confines of covid offering you more time at home i'll help you bank off that friend and how is coronavirus impacting communications with customers? and all your calls in tonight's edition of the lightning round so stay with cramer. >>> right now we have an incredible bull market in all things housing and housing related as people stuck indoors rush to buy homes in the suburbs and fix them up. so when azek came public, the market lapped it up. they build products easier to maintain than things like wood azek does decking, railings, porches, lighting, exteriors my contractor, michael haley, putted it over the front of my house without knowing i was familiar with the stock. it looks dynamite, but it won't rot like my previous stock the stock is now at $35. the numbers were great, a strong top and bottom line. we need to know morable this stock, so let's dig diaptype

well, speaking of stock splits we know what happens to a stock after a split, but what about optionsn a stock bonawyn, why don't you walk us through some options action 101 here >> i'd love to couple things to keep in mind in terms of options there's going to be three main things that you need to look out for, m & a, certain types of dividends and stock splits we're going to focus on the last one. we've heard it ad nauseam. this is a non-economic event no value should be created or eroded in this situation your north star is your conversion ratio or your split ratio. the first thing you're going to want to look at is the options contracts. let's take a $1500 stock that everyone knows very well for example. you're going to have a situation where each option already in existence gives you assets to or leverage to 100 shares in a 5-1 split that's going to give you access to now 500 shares in addition to that you're going to go to the strike price. that strike price is going to be divided by that conversion ratio. 1500 divided by five is going to get you to 300 think of it as an equation

>> the first thing is we actually are some high profile stock splits.haven't had these in years. companies have been letting their stock prices just rise well into the thousands in the way they never have before, so now all of a sudden you yet two high -- you get two high profile companies, supposedly their stocks go up -- both of their stocks go up on the day of the announcement. it really got people excited. there's this idea that maybe the companies are signaling that things are going pretty well, but nothing's really changed. it's just investor excitement for these things. though history has shown that you do get a pop after the announcement, but then the stocks tend to underperform after the split. jack: okay. so whether or not it's justified, right, it's happening which makes me wonder who might be next for a stock split. what do you think? >> well, i think you're absolutely right. when people see these kind of moves after a stock split, they go, huh, i wonder if that could happen for me too. and there's suggestion stocks out there that trade -- s

tesla announcing a new 5 a 5 for 1 stock split that is.are higher on this wednesday, august 12th this is "worldwide exchange" right here on cnbc >>> well, welcome or welcome back, everybody. good wednesday morning i am brian sullivan. thank you for joining us let's get a check on your markets. futures on the bottom right of your screen indicating a pretty sharp bounce for yesterday's swing. yesterday of course we were already higher, then we had the alleged russian vaccine news markets popped a bit more. up nicely most of the day but in a big turn late in the day the s&p 500, which at one point was within half a percent of its interday all-time high actually swung lower and finished lower big technology helping the big flip nasdaq falling 1.5%. nasdaq down three days in a row. believe it or not, that is the first time that that has happened since pre-lockdown. in fact, march 9th was the last time we were down three days in a row for the nasdaq not sure when the last time is we were down four. smart people can figure that out. nasdaq future

time the split is announced until it gets -- until the split takes effect once the split takes effecte the outperformance wain so in the last five years of 25 stocks in the s&p 500 that have split their stocks, once the split took effect over the next three, six, and 12 months, stock outperformed the s&p 500 less than half the time so i mean we've seen outperformance by apple and tesla in spades over the laugh couple weeks history would suggest that you're not going to see that kind of outperformance going forward. but again, i mean that is just the historical context here. the stocks are just monsters on their own right now. >> you think it may spur more stock splits these ones clearly on the surface appearsuccessful stocks are almost nonexistent. it wouldn't surprise me to see a uptick in the number of stock split announcements since we have so many stocks in high triple dinlts and even four digit values or share prices right now. >> female led funds have fared better during the pandemics. funds without a female manage rer down 160 basis points. open a sector basis, they tend to fav

how exactly would you trade these given splits >> well, i own apple it's split i'm not trading aroundtor. good for him for starting in march. half of being right is timing or more that's actually an extraordinary time to get started if it was later in march that would really be fantastic but i think to me, it's more about the fundamentals and so apple actually, there are fundamentals that i can get comfortable with it's expensive but i see where there is valuation the valuation can make sense tesla i have trouble with. apple i'm sticking with but shake my head every day. can't believe it's up on the same news of a stock split for weeks now. >> the stock split story, is there a reason why people would want to buy a stock after a split goes into effect in the stock and in essence goes from $100 stock being split 4 for 1 to four $25 stocks at the same time is there a reason fund menl lmey to want to buy these types of stocks >> is there a reason fund mentally absolutely not this is stimulus and liquidity and if you look at essentially what is going on, right? you have people as opposed t

welcome to stock split monday.le trading around $125 and change after a closing above $500 on friday, so to splitting those stocks four for one. six years after the seven for one split, it really doesn't change much though except for apple's influence on the dow which goes from the most influential to middle of the pack at 17. but as a result, we have apple's stock split. we're looking at only the third dow shake-up this millenium and the second in this decade. out goes exxon, salesforce, honeywell and touch more on tesla also splitting five for one, trading at 450 instead of 2,000 at the end of friday. stock splits are rare in this modern age, in 2020, and fractional shares available, so there's a lot of motivation to split their stock. but this might be a good thing for the stocks themselves since we have tesla up some 60% since the announcement and apple's up 30%. stuart: that is an extraordinary move for tesla just since they announced -- >> august 11th. stuart: 54, 55 -- 60%? >> yeah. stuart: i'll take that. k

in 2000 there were 42 splits.ously retail investors are playing a big role, especially in a stock like tesla. how much of this is aimed at making the stock more attractive to that base? scarlet: absolutely. that is the driver. investors can buy fractional shares, but nevertheless allows easier and itit is psychological. a stock split exit feel better if you can buy 100 shares rather than one share. also signals that the company believes the stock will keep rising. we showed you earlier about apple, how it split its stock five times. it took 12 years to double its price after that first split. what you are looking at right now is how many stocks are trading above $100. back in the day that used to be the level that would prompt a split. there were only nine. one other thing i want to mention is, stock split increase options. if a stocks prices too high, it makes it more expensive to use options to hedge with a derivative. that is something else that company executives are keeping in mind. we do note delivered -- de

hussein: i think stock split's in general generally have to split to become more accessible.e institutional investor it doesn't make that much difference, but to the retail investor it does. it is hard to afford a $28,000 security. you do have to split. is aboute stock market retail investment. you really do want to cater. the caveat is these days a lot of commission free brokerages like robin hood are now offering fractional shares. it doesn't matter what the stock is priced at. tom: well said. is thefind fascinating social and cultural pressure to be not the tech boys -- terry winokur out of stanford is iconic on this. bethere a way for tech to more accessible by signaling a stock split? tech is i think becoming more accessible because of fractional shares. these commission free brokerages are enabling everyone to invest which is why you see retail -- the bigger and wider question is what is the responsibility of the tech giants and the tech industry as a whole as they become a bigger part of the economy. tom: marc benioff was rather sharp the other day in a bloomberg inter

two issues, tesla split, apple split. let's see where the dust settles and where we are in two weeks. >> i mean, let's not forget that epic games, the maker of fortnite, a massive company, filing a lawsuit basically going after the apple app store. i understa this is also a company that's under a little bit of judicial threat, if you will. there's a headline risk here why doesn't anybody seem to care >> because they love their apple phone. they think it's the greatest thing ever and they're taking a page out of peter lynch's book, why what you know and buy what you own and what you use and again, i go back to the split which everybody's talked about. it's completely absurd but until proven otherwise, there's a couple things i do know we know we have that headline risk we know we have the potential issue with chinese demand. we don't know how that's going to play out as we come into the election the last thing i know is that trees don't grow to the sky. eventually this will come back down to earth. it's not a time to short

. >> i don't think it's great sign that stock splits are causing stocks to rally. it's not the reason someone should be buying stocks. i don't think i would make a broader conclusion this is only right for speculation and it's expensive. >> leet's talk about the stocks you do like. i know you see the market moving up modestly from here, right >> yes >> you have stocks that you call epicenter stocks that are of particular interest to you at these levels what is an epicenter stock and give us some names of ones that bubble up through your research. >> they are stocks that were harmed because of the pandemic they were forced to close because of government mandate. these are the most sense tifr to not only the business cycle but reopening. the consumer levering their house again. those will be positive tail winds. >> see the market cap of the s&p, they haven't really participated in this move to new highs. many of them are still 50% off their highs. i think that's where the real opportunity is especially if the economy ropeeopens gaming like wynn, cruise lines like car

it is and they don't mention that all that apple computers up on stock split news apple computer splits its stock for for want and it's up by 30 or 40 a $1000000000.00 much more in dollar terms than tussle was purely on a stock split knows this is an old wall street saw stocks go up on stock splits that's been going on for 100 years white house was being pointed out versus apple i don't know but tesla is more importantly a mima it exists as a name that's pretty much its value so i also here did mention test lever other than apple because tesla you know grab the headlines and it's it does drive people crazy because you know apple sells a lot of products and tesla doesn't necessarily sell so many products so the fact that they just keep. going up despite being like such a target unlike my twitter stream i don't see a single mention of apple up on split i see thousands of mentions of tussle up on split so just like a my twitter as a as a analysis of what the perception is out there for some reason people don't say that the there is on the something else going. so there was also big news wh

susan: call it stock split monday. it's so popular that online trading platforms like robinhood, charles schwab, td ameritrade and others have phased outages because of this demand. apple splitting four for one, tesla five for one, fifth in apple history, first for tesla. both stocks are rallying today, that was the point to make it cheaper so more people can buy in and they are. stock splits are rare in 2020 because we live in an age of zero commission trading, fractional stocks are available as well, and nothing really changes after this except for maybe the influence that apple has on the dow, as you just highlighted, which goes from number one to the middle of the pack at 17. but the dow can thank apple for propping up the industrials, accounting for 1400 points to the index all by itself this year. also using the apple stock split, by the way, to shake up the index. this is only the third time this millenium old companies come out and new companies go in. the last stock sflplit was six years ago, seven for one spl

so what is leading to tessa's stock split is probably the incredible run and has had this year.e a look at this, out of the march lows, this is actually a one year chart, up 842%. it is incredible, especially considering around one year ago the company was questioning whether or not they had sustainable profitability. stocksk in the day when used to split, and had to do with once the stock reached $100 but not anymore. we take a look at those in the s&p 500 that are over $100, at , back in 2005, 10. it has to do with the individual performance with these stocks. and with tesla above $2000, that coming after the announcement of the split, it is really tesla, the engine that keeps going. vonnie: thank you. we are back with tina fordham, head of global political strategy at avonhurst. we were talking about the democratic national convention, which has wrapped up. now we have their presidential and vice presidential nominees. what will the rnc take from the dnc's week in order to turnaround what seems like goodwill? tina: i think they will take away how difficult it is to pull off a

i look at that and i think it's illogical that apple would be up 30% just on a stock split. reminds me about then. then i look at something else. we have faang and microsoft. we have them making up 27% almost of the s&p 500. i'm comfortable staying invested comfortable being in my stocks i'm not comfortable in broader market >> comfortable staying invested is comfortable staying in your stocks you are bullish on the market. holding your position -- >> i don't own it. i don't own that top part of the market i really underperformed. i owned something that will be closer to the equal weighted s&p. thst more where i am >> joe,it's tough to be a portfolio manager out there and not be in the top five stocks in the s&p 500 if you want to meet your benchmark >> yes i think it's also tough to be a portfolio manager as you look forward to the month of september and the end of 2020. to try and think logically that we are overconcentrated. there is an overvaluation because if you go through that very thoughtful and logical exercise, what you'll find yourself doing is taking off risks in

stockock split -- does split deliver higher prices? [laughter] >> i do not understand it entirely as an investment because today you can go on discount brokerage trading sites and by fractional shares. split ifuy the stock you like. i am less inclined to believe it matters that much. these are psychological issues for some people and i think a lot of professionals look at it as -- >> we are talking about tech companies, so i want to ask about tech. how do you classify it? defense, offense, both? what do you do with it? >> there are two ways to think about it. if you look at the tech sector there, internet retailing and maybe entertainment, they are about 45% of the s&p 500. the difference is valuation. 2003, you had this very sharp decline in markets led by the dotcoms imploding. you might see some pullback as there has been incredible concentration in these growth names. i think that is the difference. the defensiveness of secular growth is the way people perceive it. we do not need the economy to carry these companies as they gain ma

here so how is apple performing around these prior stock splits?rically they say that apple has outperformed the parks in a three-month split break. apple shares have also out performed. this comes as apple as skyrocketed higher the share up more than 70% this year now on it's best up since 2008 up 140% in the last 12 months. there is really three big reasons. one says apple's cash pile they will say that apple is benefitting from the work from home trend, the mac and ipad especially some of the important deck trends in the years ago. >> josh, stay with us. there is another stock political today. let's get to our phil labeau >>> tesla going to another all-time high today. once it kicked in they thought i will cash out. look at the market cap, another new all-time high, $445 billion. let's put this into perspective with the top five auto makers worldwide. they had alliances in there as well as hyundai. you add in all of those automakers the market cap is below tesla's market cap they sold about 44 million this year a little over 360,000 vehicles so

everybody's talking about the split. the splits don't create value.nt advisers more than 60% bullish normally a level associated with correction you know six months ago every day the market fluctuatesed wildly on news out of china and the united states. china relations have soured badly. the fiscal package expected by mid-august now is a late september expectation and this election uncertainty you know and i've not decided who i'm voting for but we have, you know, the risk of a sweep in either direction and you know, a you think we face great uncertainty in the election outcome my view is -- >> lee -- >> go ahead. i'm sorry? >> sorry go ahead go ahead go ahead >> you know, my view of the market if it doesn't go up much further from current levels rest of the year and frankly wouldn't be surprised in the market dropped next year. i don't have to make that bet now. >> let me ask you, if you're not putting a lot of money into stocks, i know you sold san too too toosanteen? and why and have you sold other stocks as s as well? >> i'm reasonly fully investe

i think the stock split is a sign of confidence. liz: okay. people have less than 51 minutes to go before they have got to be shareholders of record on apple if they are going to get that four-for-one stock split. good to see you both. thank you so much. yeah. we've got about call it 50 minutes to go before the closing bell rings. records abound. dow up 220. that nasdaq gain of six points, that's a record. the s&p gain at the moment, that's a record. the cruise liners on the high seas at this hour after that emergency authorization by the fda for convalescent plasma as a covid-19 treatment moves higher. carnival up 9% followed by norwegian cruise lines and royal caribbean in the green. while analysts are saying the 35% mortality reduction rate through the use of the plasma treatment may not exactly be enough to dramatically change the current travel booking trends, investors in carnival, norwegian and royal caribbean obviously are just saying let's buy, not sell on the news. >>> and today, new york state has finally lifted the lockdown order o

that split.onnie: abigail, thank you for that. . we will keep an eye on those stocks. it is time for a bloomberg business flash. a look at the business stories in the news. robinhood and other online brokers said a some clients face problems in trading today. it is pretty you team but rarer for several brokers to experience it together. td ameritrade and vanguard among those saying some clients may have had trouble accessing their website. just more than one hour ago, robinhood said it had resolved its problems with options and cryptocurrency trading. it listed more than 2900 problems today for robinhood and more than 7004 ameritrade. amazon has taken a leap towards delivering goods. handful off only a companies certified by the government to operate as a drone airline. that allows amazon to begin its first commercial deliveries under a trial program. it will use drones that it was -- that it unveiled last year. 's nestle's biggest acquisition yet and the health science field. has agreedwner of i

i am all for the split, i am not for buying the stock ahead of the split.t like it because these new investors that have been brought in of late and how they would really want to take part in a tesla or an alphabet, for instance they just -- amazon and they just feel like, do you know what, this one i can't do, the same way berkshire couldn't do it a lot of the companies when i speak to them say the big constitutions don't want it because they have to pay more commission per share i think that's nonsense. the best shareholder you could have is an investor small person who wants to stick around. i am all for this and my view is it's creating value. it is bringing in new people which i think is fantastic for the dinosaur collection that you and i have become. you are a stega, i like to thin i'm a we will os raptor. it can happen. we are not talking about dinosau dinosaurs. >> it is a revitalizing thing. we want them to participate in the capital markets, we want them to actually understand what's going on and to understand the underlying metrics of what value

tesla as well after a five for one stock split. the rest of the market, fairly mixed.hat was happening? abigail: this is the last week of august -- the last day of august. the day before labor day. mixed markets. the s&p 500 having its first down day in eight. august, unbelievable. the s&p 500 up 7%. the nasdaq up 11%. the best month all the way back since april. the real standout, it really is just unbelievable, spectacular. the new york faang index, the best month ever. this is a big index going back to what he 14. the buying -- back to 2014. that was the degree of the buying of those big momentum stocks. you could say the fuel for this risk on rally pushing the dollar lower. these indexes nominated in dollars climbing. emily: talk to us about the activity we have seen on the back of the apple and tesla stock split. shares being driven up even though nothing has changed about the company's fundamentals. any surprises? abigail: the degree of buying is pretty surprising. as you mentioned, value is not created. leanne government said, if you have a -- leon cooperman sai

that split will be effective august 31st.big headliner, shares of moderna which are up nearly 10% pre-market, 230,000 shares of volume president trump announcing that the u.s. government has reached a deal to buy 100 million doses of moderna experimental covid-19 vaccine. the deal is worth around $1.5 billion and the government has the option to buy another up to 400 million more doses so those shares up 11.5% right now. shares of deere which are down on thinner volume pre-matter biggest maker of farm equipment gets downgraded from a hold to buy citing the big upside move in the shares and the stretch valuation. by the way just for context those shares are now up 82%, andrew just since the pandemic lows reached back in march record highs for the market just in sight and deere shares massively higher i'll send things back to you >> getting so close. we have to get out our rally caps some news just out from drugmaker bristol-myers. investing $300 million to address health inequity. one of the primary uses is to train clinical t

meantime, we are looking at to that stock split for apple. tesla looking forward to a stock split.ut, a down day. abigail: they split the same day apple on monday. it's interesting, because you have this momentum in these retail investors. in on the stock before the split happens. tesla, not so much. also not receiving the love, zoom down 2.6%. schools startas to reopen. the company said they had resolved the technology problem. , that one seemed encouraging around the idea that the economy is going to reopen and also the stay-at-home trade causes some concern because outside of apple, some of the other big temp -- big tech companies just about flat. doc you sign receiving positive mention from wells fargo. netflix also down. one other software stock, oracle. more sources saying that they are likely to enter the race for tiktok u.s. assets. as you were mentioning last week, of course larry ellison, the founder, is a supporter president trump. perhaps that could make a bid for oracle perhaps easier. total speculation of course but there does seem to be a political connection between

the democratic party was really split in three. you have douglas as the predominant democratic candidate but then these other two union parties, more conservative and different aspects. that's one of the reasons why lincoln was able to win the election. because of the split. >> host: what was the final vote count, do you remember? >> guest: it was enough at the very end what lincoln was afraid of was new york with its electoral votes went for douglas. there were a lot of irish-catholics in the city, a lot of conservative merchants in the cities who wanted to keep trading with the south, didn't want slavery to be such an issue, and they did yeoman work in new york even though he was told, he said until i hear new york's totals because if he he's

it was a 441 stock split taking effect for apple and even though the splits do not -- do not affect theic value of the company are chains the economics, retail investors tend to take this as a bullish sign and helped push apple to 76% gains year to date. check out tesla's stock -- a similar surge where a five for one stock split took effect, pushing the stock up 12% on the day, close to a 5% gain year to date and both companies added a combined $100 billion value in this latest surge. let's talk about what happens for elon musk in the billionaire rankings. he is now right behind jeff asus numberl gates to rank as three for the richest person in the world. hastesla ceo's net worth increased 80 billion this year and surpassed mark zuckerberg whose net worth is about $110.8 billion. worth --etwork -- net and jeff bezos'ex-wife became the world's richest woman in may. so that's the latest on that. we are also seeing these outsize performance moves by stocks considered that covid winners. dialing.been that so give us the rundown of what's up with zoom after the bell? let's go to the after ho

. >> the tesla shares will start trading on a split adjusted level. instead of seeing it 21.33 and 21.37. a stock now trading somewhere between $444 and $445. there you see premarket down just a little bit. roughly in that 440 range is what you're looking at compare tesla to august 11th why are we picking august 11th 5 for 1 stock split and since then the s&p had a nice little move higher but nothing, nothing at all compared to tesla which is up 55%. what is elon musk been up to split adjustment for the shares of tesla no, he has a lot of other projects on his plate. the most interesting tweet over the weekend, somebody asking him if he was going to be in germany. yes, i'll be in germany for a meeting with curevac that is developing a printer for vaccines ask cuvaccin s and cures. conversations with harvard epidemiologist confirmed that a high speed rna printer could be helpful in vaccines and cures in many areas elon musk is not only thinking about tesla or spacex he has his hands in a lot of different areas. september 22nd is battery day. this the n

analysts expectations so this stock split would quote help to appeal to a broader group of investors that is make it more attractive to retail investors who have a really hard time struggling and swallowing a triple digit price tag of 400 so the last time they did this was back in 2014 when they did a 7 to one stock split when any of the 700 price mark so stocks but really doesn't do anything for its valuation the price this quarter the dividends are quarters so it's exactly the same thing but cosmetic lee it looks very different because the price tag is lower so to an average retail trader it doesn't seem like that big of a commitment to buy something at a share of $100.00 versus $400.00 so it makes the stock a lot more liquid and tradable so right now there are one actual effect of the stock but one benefit is that it relates to the membership of the dow the dow is a price weighted average versus versus a percentage based index so that means the moves are based on the dollar move at the price so previously apple had the most effect on the dow every single time it moved because it w

up more than 44 percent this year alone meanwhile the company also announced a $4.00 to $1.00 stock split so for more on what this is for more on this and what else is moving markets let's go ahead and bring in boom bust co-hosts christiane and c.e.o. of transformative research tobin smith thank you both for joining us today now christie why did apple announce this stock split. well on thursday after earnings which reported strong sales and. beating analysts expectations so this stock split would quote help to appeal to a broader group of investors that is make it more attractive to retail investors who have a really hard time struggling and swallowing a triple digit price tag of 400 so the last time they did this was back in 2014 when they did a 7 to one stock split when any of the 700 price mark so stocks but really doesn't do anything for its valuation the price this quarter the dividends are quarters so it's exactly the same thing but cosmetic lee it looks very different because the price tag is lower so to an average retail trader it doesn't seem like that big of a commitment to buy

first of all, what is tesla's thinking in issuing the stock split? way, this management signaling confidence they think shares will go higher from here. stock,g this, tesla which is trading just under $1400, if it stays around the same valuation, will be about $300 per share. it also means this is a benefit to retail and other small traders who otherwise had trouble affording tesla stock. this should not really affect the price in theory, because the value of tesla as a company itself is not changed by splitting its stock. we do know that the retail crowd tends to favor tesla. robinhood, for example, the trading app based in the u.s., has 550,000 accounts that hold tesla, up from 180,000 back in march. also a signal to them that it is safe to jump in and buy more shares because it is now cheaper just to buy an individual share of tesla. francine: apple also split stock recently. what was the ultimate effect of that? dani: about two weeks ago, apple split shares in a four to one exchange. we saw apple shares reached a record high. it was also around a

and guess what they want to what it all or some republicans or democrats want $600.00 for 50 baby split the difference one of the most incredibly difficult negotiations of all time hey let's split the difference. christiane tobin smith of transformative research thank you both for. audience today. and that's it for this time you can catch boom bust on demand on the brand new portable t.v.'s of ale and smartphones and tablets to google play and the apple app store by searching portable t.v. portable t.v. can also be downloaded on newer model samsung smart t.v.'s as well as a roku devices or simply check it out a portable t.v. we'll see you next time. we go to work so you stay home. how can you explain love i've been to 82 countries i've given 12 but i came here and on those 3 days i just filled with hope. and he kept pretty isn't the same show. i made my decision to come here because i felt i knew i could build a new life see it at the. companies and. so i was a free man. god decided that this money is no good to be free. then. you know. my one dream is that all my children 'd find the s

is splitting its pricey shares.s will receive a dividend of four additional shares for each one they already hold. on theding will begin split in an adjusted basis. dani burger is here. the thinking behind this is really about liquidity. when a stock become so gargantuan, it is good to inject some liquidity, isn't it? dani: absolutely. ,f you are a small investor affording the shares is quite a difficult prospect. they currently trade just under 1400. changery, this shouldn't tesla. it should not have any effect on the value of the business itself. it does not necessarily dilute shares either. it does make it more profitable. for tesla, it is all about the retail investor. it has been part of the reason we have seen tesla surge so much. robinhood accounts hold 550,000 accounts hold tesla, up from 180,000 shares in march. nejra: when apple split its stock recently, did retail investors pile in then? did it work? dani: it did work in terms of it came on the heels of a positive earnings announcement. we saw apple share