Fortune:
Having closed at $645.57 Friday, Apple is set to open Monday at $92 a share.
The 7:1 split Apple AAPL -0.28% announced in April takes effect Monday for shareholders of record as of June 2.
The company’s FAQ doesn’t explain why it chose the 7:1 factor. The previous splits — in 1987, 2000 and 2005 — were all 2:1.
Long term, this will be very good for Apple shareholders and undoubtedly the company itself.
“Long term, this will be very good for Apple shareholders and undoubtedly the company itself.”
Why?
Stated like this without explanation it amounts to little more than reading tea leaves.
“Long term, this will be very good for Apple shareholders and undoubtedly the company itself.”
What a lazy post. I guess it could make the stock more affordable? And how could the split be good for “the company itself” as opposed to shareholders.
In other news, Trip Chowdry is readying his latest article about how he was right that AAPL was going to drop 85% in 2014…
Nearly $700 per share may have set the barrier for entry too high for smaller investors. This split will allow MANY new people to become Apple shareholders. These are people who believe that Apple will continue to increase in value but didn’t have the capital to invest significantly before. I’d expect a significant per-share jump in the short term jump based on that.
Longer term, it depends what you think Apple will perform like in the coming years. Personally, I believe they’ll continue creating value and drawing interest from investors. I believe their share prices will continue creeping up in the long term, making a lot of money for the people who are already invested and those who are able to get in early after this split.
I wonder if this move is happening now to combat the “Apple is doomed because no new smart refrigerator at WWDC” headlines which have probably popped up all over Business Insider and WSJ in the past week.
The stock split was announced several weeks ago along with the timing. It has nothing to so with any headlines.
If you don’t have $700 to invest in an individual stock, you shouldn’t be investing in individual stocks, you should be diversified and invest in something like an SPY, SCHB or an IWM.
Not true at all. Lots of folks use things like Sharebuilder to buy partial shares in companies they like.
Diversification is very important and individual investors are not going to beat the market at any level that is indistinguishable from luck. This holds doubly true for investors that do not have a lot of money to invest because they do not have mad money that they can afford to lose. At those levels transaction fees are going to eat all of your upside. You’re far better off riding a low fee ETF and slowly building wealth than betting on red.
Perhaps but that’s not what we were talking about.
But if you’re buying partial shares through ShareBuilder, it doesn’t matter if the share price is $700 or $700,000
Are you sure? Apple knew what they were announcing at WWDC in advance, and it was easy to predict how Apple doomsayers would respond. I think it was time for the split, I’m just curious about the timing (which I think is strategically great for them.)
What if you had $7000 to invest? I’d much rather have 70 shares of something with room to grow than 10 shares of something that has seemingly topped out.