Apple and Tesla rose sharply on Monday, the first day after their recently announced stock splits took effect.
However, legendary investor Leon Cooperman thinks"Look at Tesla and Apple: Everybody understands that [stock] splits don't create value," Cooperman, the founder of Omega Advisors, told CNBC's "" 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. Through the first hour and a half of Monday's session, Apple had traded 82.7 million shares, which is roughly 46% of the stock's 30-day volume average of 178.588 million. Tesla shares had exchanged hands 37.4 million times, more than half of its 30-day volume average of 73.369 million.
This year, smaller traders have been more actively participating in the market as commission-free online brokerage Robinhood grows in popularity. But Cooperman sees this as a potential sign of being overheated. "I see signs of euphoria creeping into the market: the IPO SPAC market is one, [and] the craziness in many of the stocks that the Robinhood crowd has latched onto," Cooperman said. "You see a Kodak go from $1.50 to $60 and from $60 to $6 in a very short period of time … and when you look into it, it's the Robinhood crowd taking it up."for exclusive insights and analysis, and live business day programming from around the world.
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