Apple advanced 4% and was the best-performing component in the Dow Jones Industrial Average. Tesla jumped around 10%.
Monday’s gains are the latest in a string of strong performances since the companies announced the stock splits.
Apple said July 30 its board approved a 4-for-1 stock split. Since then, the stock is up more than 32%.Â Tesla has skyrocketed more than 70% since it announced a 5-for-1 stock split on Aug. 11.
Billionaire investor Leon Cooperman, however, said Monday thatÂ run-ups on the back of stock-split announcements are a troublesome sign for the market.
« Look at Tesla and Apple: Everybody understands that splits don’t create value, » the founder of Omega Advisors told CNBC’s « Squawk Box. » « My dad once told me if you gave me five singles for a $5 bill, I’m no better off. »
Monday’s gains in Apple and Tesla came amid high volume as smaller traders are able to snap up shares in both companies at a much lower price than on Friday.
Through the 90 minutes of Monday’s session, Apple had traded 82.7 million shares, which is roughly 46% of the stock’s 30-day volume average of 178.588 million. Tesla shares had exchanged hands 37.4 million times, more than half of its 30-day volume average of 73.369 million.
This year, smaller traders have been more actively participating in the market as commission-free online brokerage Robinhood grows in popularity. But Cooperman sees this as a potential sign of being overheated.
« I see signs of euphoria creeping into the market: the IPO SPAC market is one, [and] the craziness in many of the stocks that the Robinhood crowd has latched onto, » Cooperman said. « You see a Kodak go from $1.50 to $60 and from $60 to $6 in a very short period of time â¦ and when you look into it, it’s the Robinhood crowd taking it up. »
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