So, what’s worth more, a $100 bill or 400 quarters? From a strict value perspective, they’re essentially the same. However, their practical uses differ considerably. Picture this: trying to pay for a drink with coins isn’t likely to win you any favors at a local bar. Similarly, a $100 bill won’t be much help at a vending machine that only takes $1, $5, or $10 bills.
This example really highlights the importance of having the right value, which also applies to stocks.
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Even if a stock is split, the overall value of the company remains unchanged. The approach to dividing the shares simply shifts. Stock splits might not alter fundamental aspects of a company but can change how it’s perceived, often making it seem more appealing to investors.
With that in mind, let’s revisit how five well-known stocks have performed since their notable rallies following stock splits.
Tesla (NASDAQ:TSLA) executed a 3-for-1 stock split on August 25, 2022.
After the split, Tesla shares traded just under $300 each. Today, they’re around $400. That’s a gain of about 37%, and the compound annual growth rate since the split sits at 9.3%. Comparatively, the S&P 500 had a CAGR of about 16.5% in the same period.
Currently, the stock is valued at $400, and there’s some concern among investors about another potential split.
Alphabet (NASDAQ:GOOG, GOOGL) executed a 20-for-1 split on July 15, 2022, lowering its share price from over $2,250 to approximately $113.
In previous years, Alphabet vastly outperformed the S&P 500, delivering a total return of 167%, in contrast to the index’s 84%. Its 30.1% CAGR is nearly double that of the S&P 500’s 18.2%.
Out of all these stocks, Alphabet has been the most successful since the split. Will this impressive performance continue, or could the company’s significant investments in artificial intelligence dampen its future stock performance?
Netflix (NASDAQ:NFLX) performed its most recent stock split when it adopted a 10-for-1 split on November 17, 2025, bringing the price down from over $1,000 to around $110.
However, Netflix has faced challenges since this split, including intense competition in a costly bidding war, particularly with Paramount in acquiring Warner Bros Discovery. While Paramount emerged victorious, both companies experienced setbacks.
Since the split, Netflix shares dropped around 10%, but they have increased about 20% since losing the bidding war, hinting at market sentiment regarding the Warner Bros deal.
Investors are now wondering if Netflix can still boost revenue through price increases or if consumers will resist higher subscription rates.
Amazon (NASDAQ:AMZN) executed its first stock split in over two decades on June 6, 2022, breaking its stock into 20 shares and lowering the price from around $2,500 to $125.
Since then, Amazon’s stock movement has been consistent with the S&P 500 index, with a 71% increase compared to the index’s 73% rise.
The company is also venturing into innovative projects, like bipedal robots and its satellite internet service called Amazon Leo, aiming to rival SpaceX’s Starlink.
Nvidia (NASDAQ:NVDA) executed a 10-for-1 stock split on June 10, 2024, reducing the price from about $1,200 to $120.
Since then, Nvidia shares have outperformed the broader market, gaining around 46%, while the S&P 500 rose about 29%.
The success and growth of Nvidia during the AI revolution have made it the largest company in the world, but the question remains: can it maintain this dominance as competition in the AI chip market escalates?
If you’ve ever felt like you missed out on purchasing top-performing stocks, this might be of interest to you.
In rare instances, our team offers recommendations for stocks poised for growth. If you’re worried about missing investment opportunities, now may be the right time to act.
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NVIDIA: If you invested $1,000 when it doubled in 2009; you’d have $467,544!
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Apple: If you invested $1,000 when it doubled in 2008; That’s $47,627!
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Netflix: If you invested $1,000 when it doubled in 2004; you would have $514,000!
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