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“Apple will split its stock for the fifth time in its history, the iPhone maker said on Thursday after reporting strong earnings that beat analysts' estimates.
Apple said it would enact a 4-for-1 split on August 24, meaning that each share owned by an investor today will turn into four shares. At the same time, Apple's stock price will be quartered, from about $400 now to about $100 when the split happens.” - Business Insider
Thoughts regarding buying opportunity or, meh, no big deal?
but no one can say what it means for apple since they are a household name ... it may spur mom and pop demand . but overall individual investors account for little stock trading or ownership. the institutions dont really care about the price .
but no one can say what it means for apple since they are a household name ... it may spur mom and pop demand . but overall individual investors account for little stock trading or ownership. the institutions dont really care about the price .
stock splits over the years are very few .
Apple said a stock split would allow it to "appeal to a broader base of investors." The move will appeal to investors who have a difficult time buying a stock sporting a triple-digit price, according to the article. I have to admit, I don’t own any individual stocks, but this split has my attention.
Apple said a stock split would allow it to "appeal to a broader base of investors." The move will appeal to investors who have a difficult time buying a stock sporting a triple-digit price, according to the article. I have to admit, I don’t own any individual stocks, but this split has my attention.
i would never consider buying less than a few thousand in anything so it does not effect me .
80% of all the days trading is institutional machine trading . very little volume is individual investors buying individual stocks .
With the 10% increase in yesterday’s price, I sold 20% of my AAPL. With the big run-up, I had almost 8% of my portfolio in this one single stock - too risky for my blood. That said, I think it’s a great stock and would not have sold had my holdings been more balanced.
Apple said a stock split would allow it to "appeal to a broader base of investors." The move will appeal to investors who have a difficult time buying a stock sporting a triple-digit price, according to the article. I have to admit, I don’t own any individual stocks, but this split has my attention.
It’s not really all that applicable these days. Years ago when buying round lots was the norm maybe it was more of an issue but now investors can buy fractions of a share from many places like fidelity, schwab etc
These days a stock split doesn't really affect the company out side of mechanics. Apple didn't have enough authorized shares. Mainly because they are so cash heavy and have been buying their stock aggressively over the last several years. I can only imagine how many treasury shares apple owns.
Anyways, with the split apple was trading at $400 so going to $100 doesn't really matter in 2020. Mainly because of the ability to purchase fractional shares on most brokerage platforms.
In 2016 having a lower entry point would move the needle a bit. Today that isn't the case. Apple still a great company with good fundamentals still a solid buy
Most of us understand how a split works and know that they don't matter much, but don't underestimate the mentality involved here. I find that one of the biggest things that newbie and novice investors have a hard time understanding is separating share price from value. They struggle to understand how a $300 stock can be cheap and a $10 stock be expensive, and prefer to go with lower priced stocks, thinking that they're somehow getting more bang for their buck. I understand that fractional share purchases are available, but to many, a $2,000 investment somehow sounds better if they can get 20 shares of a post split Apple rather than 2/3 of a share of Amazon. It's ignorance, but it's real, and I think it was smart of Apple to split it and make the share price the lowest by far of any of the other FAANG stocks, even including MSFT. It'll be fun to see how long it stays around $100 something.
Long AAPL.
Last edited by treasurekidd; 08-01-2020 at 01:25 PM..
Since Apple is in the Dow, it also will move the Dow less than when it was 400.
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