Apple and Tesla: Should Investors Buy, Sell, or Hold After Their Price Surges?

In recent times, both Tesla and Apple have significantly outperformed the market, leading to a 300% increase in Tesla's stock and a 60% increase in Apple's stock value year-to-date. While the surge in their stock prices is commendable, investors are left wondering whether this is the right time to buy, sell, or hold onto these stocks.

Market Performance
As of Friday, Tesla's shares surged to approximately $500 following a 5-for-1 stock split. On Monday, Tesla traded around 115 million shares, pushing the stock value to nearly $500. This comes after Apple's stock saw a similar surge due to a 4-for-1 stock split. Apple's stock price, which had once represented 12% of the Dow Jones Industrial Average, has now fallen to about $129 per share. Apple's stock closed up 3.4% to $129.04, while Tesla's rose 13% to $498.32.

The Driving Force Behind Stock Price Movements

The fundamental reason for any stock's price movement lies in the balancing act of buyers and sellers. When buyers are more aggressive than sellers, the price moves up, and when sellers are more aggressive, the price moves down.

What Drives the Market?
Understanding the 'why' behind this price surge is nearly impossible. Each trader has their own rationale, and many trades are executed by automated systems, leaving it almost impossible to pinpoint a single reason. Therefore, the focus should be on what the surge means for investors.

Ignoring the 'Why' and Focusing on the 'How'

Investors should focus on the long-term strategy rather than trying to discern every 'why.' The volatile nature of the stock market, especially in 2020, makes it challenging to predict short-term movements accurately. However, for the long-term investor, these two powerful stocks offer significant potential.

Long-Term vs. Short-Term

For long-term investors, the outlook is promising. The surge in Apple and Tesla's stock prices indicates strong investor sentiment and growth projections for these tech giants. However, for short-term investors, the market can be unpredictable and potentially risky.

Conclusion

The question of whether to buy, sell, or hold Apple and Tesla stock is a subjective one, and the answer largely depends on individual investment goals and risk tolerance. While the past performance of these stocks is a positive indicator, the future path is uncertain. Long-term investors can cautiously consider these companies, while short-term traders should be aware of the potential volatility.

Key Takeaways

Apple and Tesla have outperformed the market with significant price surges. Stock price movements are driven by balance between buyers and sellers. Long-term investors can consider holding these stocks, but short-term traders should be cautious. The future of both companies remains uncertain and depends on various external factors.

In conclusion, while the current surge is impressive, the future of both companies remains uncertain. Long-term investors might consider holding these stocks, while short-term traders should be prepared for volatility.