How should you trade the Apple and Tesla stock splits? (NASDAQ:AAPL)

There could be some excitement tomorrow around two of the market’s favorite stocks.

Apple (NASDAQ:AAPL) begins trading after a 4-for-1 split at $125.50/share, while Tesla (NASDAQ:TSLA) starts trading on a 5-for-1 split-adjusted basis at $443.40/share.

While the market caps of the companies will remain the same, some are saying the moves will make shares “more accessible to a broader base of investors” and therefore a new catalyst for the “Retail Bros.”

Others say it could lead to some profit-taking, with traders cashing in on a record run following the recent split announcements.

Apple: Since the company’s split disclosure on Jul. 30, shares have jumped 30%, nearly half of the 70% gain the stock registered YTD. This marks Apple’s fifth stock split as a public company. Apple conducted a seven-for-one split on June 9, 2014, and two-for-one splits on June 16, 1987, June 21, 2000, and Feb. 28, 2005. Had Apple never split its stock, shares would currently sell for around $28,000. Apple has also been the most influential stock in the DJIA, but its split will change that starting Monday.

Tesla: Shares of the EV maker have jumped 61% since Aug. 11 (when is announced a split), building on an already impressive surge this year that saw shares surge more than 400% and hitting 33 record closes in the process. The rally has also boosted the company’s market valuation to around $409B, and made it the eighth biggest company in the U.S. by market cap.

Should you buy/sell at the new levels? Price targets? Other forecasts? Comment below.