How Nvidia, Alphabet, Amazon, Netflix, and Tesla Performed After Their Stock Splits

According to a report from Motley Fool, five major tech companies—Nvidia (NVDA), Alphabet (GOOGL, GOOG), Amazon (AMZN), Netflix (NFLX), and Tesla (TSLA)—have split their stocks in recent years. Performance analysis post-split shows that while the move does not alter the company's fundamental value, it can increase liquidity and appeal to retail investors.

Post-Split Performance

• Nvidia (NVDA): Split 10-for-1 in June 2024. The stock has risen over 150% since, driven by AI business growth.
• Alphabet (GOOGL, GOOG): Split 20-for-1 in July 2022. The stock has gained about 50% since, with continued growth in search ads and cloud computing.
• Amazon (AMZN): Split 20-for-1 in June 2022. The stock is up roughly 30% since, supported by e-commerce and AWS.
• Netflix (NFLX): Split 10-for-1 in July 2024. The stock has risen about 20% since, with subscriber growth.
• Tesla (TSLA): Split 5-for-1 in August 2022 and 3-for-1 in August 2024. The stock declined about 10% after the first split but rose after the second.

What It Means for Investors

Stock splits are administrative actions aimed at making shares more affordable for retail investors without changing the company's market cap. Post-split performance depends on company fundamentals and market conditions, not the split itself. Investors should focus on fundamentals like revenue, earnings, and growth rather than the split.