Currently trying to create some sort of trading strategy. One of my criteria in filtering stock is share price. It got me wondering, if a companies shares outstanding is half that of another but its price is worth twice as much are they equal. For example tesla is around $250 per share but has 120M shares outstanding. Much less relative to some other stocks.
My question is, the stock is expensive but not so much if you think of facebook or twitter who have 2x or 4x more shares. Any thoughts?
I was thinking of shorting over proced stocks. Price wise tesla is much more expensive but you own more of the company. So does shares outstanding play a big role in the probability of a move relative to pricing?