Nice... very nice. Tesla wants to do a stock split once more. Hopefully it passes.
Tesla wants to split its stock so it can pay a stock dividend to shareholders, according to a filing Monday.
The Securities and Exchange Commission filing said the electric car maker will ask at its annual shareholders meeting “for an increase in the number of authorized shares of common stock ... in order to enable a stock split of the Company’s common stock in the form of a stock dividend.”
A stock dividend is a dividend paid to shareholders in the form of additional company shares instead of cash. These dividends do not affect the value of a company, but they dilute its share price.
In other words, if there is a 6-for-1 split, investors will get a stock dividend of five shares for every one share of Tesla they own. This would be a one-time event.
Tesla’s shares were up more than 6% at about $1,075.
The company last split its stock in August 2020. The shares have more than doubled since that 5-for-1 split took effect on Aug. 31, 2020.
The news comes as Tesla’s stock has struggled this year, slipping 4.4% for 2022 through Friday’s close. That said, it jumped 49.8% in 2021 and surged 743.4% in 2020. The shares have also risen in each of the last five years.
The move also follows a Bloomberg News report that said Tesla will halt production at its Shanghai factory due to a Covid-19 lockdown in the city.
Pardon my ignorance, but what exactly is so great about Tesla doing a stock split and why would the average investor care? They create more shares and pay out a "stock dividend", but the value of the shares should drop so that the total value remains the same, so that should be no gain/loss?
Is it just that people think that if the stock is priced at $1000, that the average joe won't buy a share, but if there were now double the shares and they were priced at $500, that now I may go out and purchase it, thereby driving the price up some and tipping the scales into greater total company valuation?
If that's the only benefit, I really wonder how many people out there actually invest more in the company as a result of such a small drop in cost. I could see it for something like BRK-A or whatever where the share price is ridiculously high, but TSLA is no where near that.
On March 29 2022 00:22 Chewbacca. wrote: Pardon my ignorance, but what exactly is so great about Tesla doing a stock split and why would the average investor care? They create more shares and pay out a "stock dividend", but the value of the shares should drop so that the total value remains the same, so that should be no gain/loss?
Is it just that people think that if the stock is priced at $1000, that the average joe won't buy a share, but if there were now double the shares and they were priced at $500, that now I may go out and purchase it, thereby driving the price up some and tipping the scales into greater total company valuation?
If that's the only benefit, I really wonder how many people out there actually invest more in the company as a result of such a small drop in cost. I could see it for something like BRK-A or whatever where the share price is ridiculously high, but TSLA is no where near that.
It's also makes it easier for people to buy Tesla call options. With the price in the thousands. The cost of a TSLA $1100 4/22 option costs $12,000 per contract. Most people can't gamble $12k. A split will lower the minimum cost of a call option.
Hi guys $CVX dividend yield states 1.4 the past year. If Iundersrand correctly that’s $1.4 per share? Sorry that just seems really good returns. I thought PG was one of the highest lol
On April 03 2022 06:03 Emnjay808 wrote: Hi guys $CVX dividend yield states 1.4 the past year. If Iundersrand correctly that’s $1.4 per share? Sorry that just seems really good returns. I thought PG was one of the highest lol
Chevron Corp? Their most recent dividend was $1.42 per share, yes. That's for a quarter and it was raised from $1.34 previously. It's expected to stay at $1.42 per quarter, so $5.68/share dividend over the year. Still only a 3.46% yield because CVX is trading at $164.22 per share. Certainly not a bad yield, but there are plenty of higher yield dividend stocks if you look for them.
Only warning being that if the yield is too high (like >5%), it's often not sustainable and you'll lose value in the stock even as you gain cash through the dividend, but do your own due diligence and maybe you can find a diamond in the rough.
This is due to basic price to earnings ratios. If a stock were valued at >20x earnings and gave out a dividend equal to 5% price then the dividend would exceed earnings.
Elon Musk has taken a 9.2% stake in Twitter Inc. to become the platform’s biggest shareholder, a week after hinting he might shake up the social media industry.
Twitter shares surged about 26% in premarket trading after Musk’s purchase was revealed Monday in a regulatory filing. The stake is worth about $2.89 billion, based on Friday’s market close.
Musk, 50, polled his more than 80 million followers on Twitter last month, asking them whether the company adheres to the principles of free speech. After more than 70% said no, he asked whether a new platform was needed and said he was giving serious thought to starting his own.
Musk has been one of the biggest personalities on Twitter and has regularly run into trouble on the platform. The Tesla Inc. chief executive officer is currently seeking to exit a 2018 deal with the U.S. Securities and Exchange Commission that put controls in place related to his tweeting about the electric-car maker.
The announcement will be yet another major test for new Twitter CEO Parag Agrawal, who replaced Jack Dorsey after he unexpectedly resigned in November. Agrawal vowed to increase accountability, make decisions faster and to improve product execution. The company set ambitious goals for growth including increasing annual revenue to $7.5 billion and getting to 315 million daily users by the end of 2023.
Musk posted a cryptic meme in December after Twitter announced that Agrawal was taking over from Dorsey as Twitter’s CEO. It depicted Agrawal as Soviet dictator Joseph Stalin and Dorsey as Soviet secret police head Nikolai Yezhov being shoved into water.
“It looks like Elon has his eyes laser set on Twitter,” said Wedbush analyst Dan Ives in a research note, adding that the stake could lead to a “more aggressive ownership role.”
Twitter is particularly vulnerable to outside pressure because unlike Google, Facebook, Amazon and Snap, the company’s founders don’t have special voting control over its future. The company has just recovered from activist pressure by Elliot Management that started in 2020 which led Dorsey, who was serving his second stint as CEO of Twitter, to set a succession plan.
It’s unclear what Musk is planning with his stake. The filing with the SEC shows that the date of the event that triggered the disclosure was March 14. The type of form used often indicates the investor isn’t seeking to acquire control of a company, or to influence who controls it.
Musk, already the world’s richest person according to the Bloomberg Billionaires Index, has made about $1.1 billion on his holding since mid March, based on the pop in Twitter’s shares in early trading Monday.
Twitter is under pressure to move faster in building new products. The company has set ambitious revenue and user growth goals to convince skeptical investors that it was serious about expanding its business. While Twitter has grown steadily for years, its stock gains have lagged behind industry peers.
Musk has lambasted Twitter’s recent development of profile pictures linked to non-fungible tokens, saying the social media company has the wrong priorities.
On April 05 2022 01:35 Emnjay808 wrote: Lol I’m reading webull comments on $TWTR:
“Elon wants to turn you into cyborgs” “I’m okay with that”
Hahaha. Also I learned from that one Ted talks that we’re all technically cyborgs already, via cell phones etc.
My grandparents on my mothers side are both cyborgs by most sensible definitions. My father might also be, but the situation is a bit more unclear there.
On April 05 2022 01:35 Emnjay808 wrote: Lol I’m reading webull comments on $TWTR:
“Elon wants to turn you into cyborgs” “I’m okay with that”
Hahaha. Also I learned from that one Ted talks that we’re all technically cyborgs already, via cell phones etc.
My grandparents on my mothers side are both cyborgs by most sensible definitions. My father might also be, but the situation is a bit more unclear there.
My mom has ball-jointed titanium knees. Her knees are stronger than mines. I don’t mind being a cyborg when the time calls my name.
RobinHood is the one that banned people from selling those meme stocks last year wasn't it? And now they're surprised fewer people are using it? Blind Freddy could have seen this coming.
EPT
