Apple, Tesla jump as stock splits take effect

• Monday’s gains are just the latest in a string of strong performances since the two companies announced they would be splitting their stocks.
• Apple said July 30 its board approved a 4-for-1 stock split. Since then, the stock is up more than 32%.
• Tesla announced a 5-for-1 stock split on Aug. 11 and the stock has skyrocketed more than 70% since then.

Shares of Apple and Tesla rose sharply on Monday, the first day after their recently announced stock splits took effect, as investors continued to pile into the popular names.

Apple advanced 4% and was the best-performing component in the Dow Jones Industrial Average. Tesla, meanwhile, jumped around 10%.

Monday’s gains are just the latest in a string of strong performances since the two companies announced they would be splitting their stocks.

Apple said July 30 its board approved a 4-for-1 stock split. Since then, the stock is up more than 32%. Tesla announced a 5-for-1 stock split on Aug. 11 and the stock has skyrocketed more than 70% since then.

However, legendary investor Leon Cooperman thinks these run-ups on the back of stock-split announcement are a troublesome sign for the market.

“Look at Tesla and Apple: Everybody understands that [stock] splits don’t create value,” Cooperman, the founder of Omega Advisors, told CNBC’s “Squawk Box” on Monday. “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 come amid high volume as smaller traders are able to snap up shares in both companies at a much lower price point than Friday.