“Apple today announced a two-for-one stock split, which will double investors’ shares held at the close of business on February 18. Trading of the newly split shares will begin 10 days later,” Jennifer LeClaire reports for MacNewsWorld. “The split comes after iPod and iTunes sales and the introduction of a mass-market, low-price Mac mini have fueled record-breaking revenues and soaring stock prices during the past year. Apple’s stock has posted a fourfold increase during the past year. Analysts said companies split stocks at certain thresholds to attract new investors who might be unwilling to purchase shares at higher prices.”
“‘Overall we are seeing better action in technology stocks today, so Apple’s announcement is set against a positive backdrop,’ Pado said. Stocks don’t split every day — and for good reason. Pado said the last thing a company would want to do is split a stock and then have it fall. Thus, Apple’s decision to split its stock would appear to demonstrate high expectation for forward progress, he said,” LeClaire reports. “‘Apple’s decision says a lot about how the board and the company’s administration feel about their future prospects,’ Pado said. ‘That’s being reflected not only in Apple’s stock, but it’s helping the tech companies in general. There is a positive feeling in the market.'”
Full article here.
i guess the mini is selling well, to say the least!
Microsoft recently had a stock split and their share price still fell, that’s because the market saw through it, it was a trick to boost interest.
Dell and Apple will be around the same $40 level so it’s more entertaining to track them for a while, till AAPL leaves DELL in the dust again
There is a positive feeling in the market.
That is because the market will have something to follow as Apple leads the way with innovation.
http://tinyurl.com/5xbrr
For a giggle, set the time to eight years.
“Dell and Apple will be around the same $40 level so it’s more entertaining to track them for a while, till AAPL leaves DELL in the dust again.”
I know what you’re trying to say, but let’s make sure pople don’t confuse stock price with market cap. At $80/share, Apple is worth about $32 billion on Wall Street. Dell at $40/share is worth $99 billion.
When Apple’s stock split, the stock will trade around $40/share, but it’ll still be a $32 billion company. Apple shares would then have to climb to $120/share and then split 3-to-1 before DELL and AAPL become comparable in terms of stock price.
Now, which is the better investment? AAPL, of course. But saying AAPL is $40/share and DELL is $40/share is pretty meaningless in and of itself. The only instance in which such a comparison would be useful is to plot relative growth. For example, if AAPL rose to $50/share from $40/share after the split, it’ll have gained 25%. DELL in that same period will probably still be trading around $40/share, or a 0% gain (or loss).
Would be nice if Piper Jaffrey’s $100 target price announced a few months back applies after the split.
😀
This split says tome that Apple has some big things happening behind the scenes. All these rumors of a G5 powerbook as well as Apple finally catching up to its promise of its processors reaching 3gHz. This should pan out greatly over the year.
My 2 cents
MacNewsWorld??? Credibility?
Its just another round-up-of-others-news blog like MDN.
At >$80/share, the stock seems expensive. At ~$40/share, people feel they are getting more for their money.
Institutions will trade based upon other factors. The split really is get the common folk to jump in.
Just a good sales tactic really. Anybody scared by Berkshire-Hathaway’s stock price?
What’s a share of class A Bershire stock running these days? Seventy-five grand?
Berkshire-Hathaway’s price is not so bad. Sure, shares of BRK.A cost $91,900. But BRK.A shares are only $3063. A veritable bargain.
So, what I am hearing is that my measily little 32 shares, which I bought for $500 about 2 years ago… ( and I think all the time why didn’t I put much more than just $500?! ) anyhoo – now it’s going to be 64!
Whoo Hoo!
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I’ve been sitting on the sidelines, drooling with envy to all of you who have stock. Hhhhmmm, maybe I should buy some next week?
MDN Magic Word: NOT, as in If I buy, the stock better NOT drop.
The only two times Apple has split has occurred in the same year just before their stock plummeted tremendously….
The split just shows that the stock has run up nicely — full stop.
focker
“i guess the mini is selling well, to say the least!”
Tell me about it. I can’t buy a Mini to save my life. I’ve been living with my brother in Miami,FL for around three months and I’ve used nothing but WinCrap all this time. I’ve never used a Wintel before–thought I was missing out…on something? but I was wrong–I love my platform now more than ever and will never, ever use anything else again. As soon as I can get my hands on a Mini, I’ll hold on and never let go.
All the pieces are in place and the planets all lined up. Apple is coming in to its own. With the superiority of its computers and platform the current market share just doesn’t make any sense. That is starting to change and as this change is seen to be becoming reality, AAPL will continue to go up. The Mac mini, that tiny little computer, is HUGE.
Jack A,
you wrote:
“All the pieces are in place and the planets all lined up.”
That was exactly my feeling when, eleven days ago, I went to my bank here in Berlin and borrowed €10,000 (to be payed back over a period of six years) – and bought Apple shares with it.
With my very modest income and no collateral whatsoever, the friendly bank clerk was not impressed, and said: “One should never borrow money to speculate.”
The ten thousand are now worth eleven thousand, and although it’s not without risk , I have a good feeling.
And it’s great fun!
I meant 13 days ago – on Jan. 31.
Charko:
Remember never bet what you cannot afford & never put all your eggs in the same basket. A lot of people got burned in 1929 & 1987 by the share market. Thats not to say don’t buy shares but be aware & only buy into companies going forward with a strong, progressive management & a good position in the market-place.
For everyone else Greenspan will probably not renew his contract for 2006 which could be good & bad except for the Bush Government & the overall debt of the USA. If the percentage of jobless increase & interest rates increase 2006-7 could be a rocky road full of pitfalls for the average home investor. Will update further after mid-year as there are many other issues at stake here. But go AAPL, happy investing & never buy on emotion & never sell in panic.