Hey Global Investor, here's what you need to know before the US markets open.
Market Snapshot 📈
S&P 500 (Tuesday Close) 3,333.69 −26.78 (0.80%)
NASDAQ (Tuesday Close) 10,782.82 −185.53 (1.69%)
FTSE 100Â (5 PM IST) 6225.36Â +71.02(1.15%)
NIFTY 50 (Today's Close) 11,308.40 −14.10 (0.12%)
USDINRÂ (5 PM IST) 74.77Â (1 Year +4.68%)
Tesla Announced 5-for-1 Stock Split
The EV automaker announced a 5-for-1 stock split yesterday, propelling the high-flying stock a further 7% during extended-hours trading.
What Happened?: In a move to make its shares more accessible to employees and investors, Tesla has authorized a 5-for-1 stock split, effective August 31st. Stockholders of record on August 21st will receive four additional shares after the close of trading on August 28th, with the stock trading on a split-adjusted basis starting on August 31st.
Tesla enjoys the highest market capitalization among automakers in the world today, with its stock price tripling since the beginning of the year. The company also delivered a fourth consecutive profitable quarter (Q2 2020), and now finds itself eligible to be added in the S&P 500 Index.
The stock split will have no impact on the company’s inclusion in the S&P. The move will also not make the stock any cheaper in terms of earnings. Tesla’s shares are currently trading at 112X the projected earnings over the next year, compared to Ford at 45X, and GM at 8X forward earnings.
Market Reaction: Tesla’s shares had ended the day, down 3.11% at $1,374.39. However, after the announcement, the stock rallied as much as 8.8% in after-hours trading and is currently trading at $1465 (up 6.6%) in pre-market trading.
Tesla Snapshot
TSLA $1,374.39 -44.18 (-3.11%)
Analyst Rating (35 Ratings) BUY 20%Â Â HOLD 43% Â SELL 37%
Newsworthy 📰
Save the Date: The next-gen Xbox will ship in November (MSFT -2.34%)
Facebook's Got New Rules:Â Facebook bans blackface and anti-Semitic stereotypes in hate speech update (FBÂ -2.61%)
That Sinking Feeling: Zoom Video’s stock sinks below 50-day moving average after Salesforce unloads stake
Later Today 🕒
6.00Â pm IST:Â Consumer price index
6.00 pm IST:Â Core CPI
11.30 pm IST: Federal budget
After Market Close - Lyft Inc Earnings
Fun Fact of The Day 🌞
Your heart will beat about 115,000 times each day
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