Stock-Split Watch: Is Nvidia Next?

Stock splits generate tons of attention for the stocks in question, even though a split does not fundamentally change the value of the investment. For instance, if you have a stock worth $100 per share that splits 4:1, you have four shares valued at $25 per share. Nothing fundamentally has changed. However, the marketplace doesn't operate purely on fundamentals.

Stock splits create buzz, and investors sometimes flock to these stocks before the split date -- but not always. Here are two recent examples from the same company.

(NASDAQ: TSLA) announced on Aug. 10, 2020, that the stock would split 5:1. The stock catapulted 76% higher before the split took place just three weeks later on Aug. 31. As shown in the chart, it gave up much of those gains right after the split before embarking on another epic run (the "S" in the chart signifies the split date).

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Source Fool.com