Why AI Can’t Be Fooled By Tesla’s Stock Split

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Why AI Can’t Be Fooled By Tesla’s Stock Split
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Why AI Can’t Be Fooled By Tesla’s Stock Split via Qai_Invest

While the additional gains may be due to organic growth , it’s also possible that investor psychology and lower starting share prices play a role, too.In August 2020, Tesla completed a 5-for-1 stock split. Between the announcement to the execution date, Tesla stock soared 60%, jumping from $1,300 to $2,000 per share. After the split, the stock grew fast from its $460 “reset” value, nearly doubling in a year.

Additionally, we’ve established that investor psychology can play a role, either in the company’s decision to split or in the post-split aftermath. Investors may view split stocks as a sign that the company sees future profits, flocking to the stock and thereby fulfilling their own prophecies.

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