Shares of Apple Computer, Inc. rose $2.23, or 3.32%, today to close at a new all-time high of $69.34 on volume of 14,107,579 shares.
Apple’s previous all-time high was $67.98 set on 11/23/2005. Apple’s 52 week low was $30.77 set on 11/24/2004.
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“Apple shares hit new all-time high” is such a tired catch-phrase.
“What can one say but, ‘Salieri!'”
– W.A. Mozart
is anyone else hoping for a split?
I don’t think another split is a good idea. There are plenty of outstanding shares. Now, let’s just look for consistent growth.
A split is highly likely to occur if Apple continues at this pace. My best guess would peg Apple at about an $850 Million profit for the present quarter (just an offhand guess, though). Last quarter they sailed past $400 Million and that was “supposed” to be a terrible quarter for Steve and the Gang because of the Intel transition.
Just remember that Steve had an extremely close brush with death about a year ago. His speech at Stanford made it very clear that he knew the end of his career was not too far away and that he didn’t intend to let it pass by without giving it everything he has. So, in the last year, he has announced the Intel shift, the video iPod, etc. He’s not holding any punches anymore.
But back to my original point: the stock will very likely split in the near future. When a company is nearing $1 Billion in profit per quarter, that’s just insane. Wall Street always buys into the growth story, and with Apple, even with the iPod’s phenomenal success, the only way to go is up
Look for a split when the price hits $80 about February. A split is a good thing. How interested are you in buying Google at $300? What if it was the same company but had split its shares occasionally and was now priced at $30? It’s a psychological thing. Would you expect a $300 stock to double anytime soon? Apple has doubled just about annually.
I wish that I picked it up when the stock dipped to 45 in after-hours trading after the earnings report.
bummer
Nuclear Kid – I am not a FORMER stock brower, but I have to say that you have offered no compelling opioning as to why a split would be eeminent for AAPL.
First, you estimate Apple in increase profits by over 110%, with no basis for this estimate, then go on to point our that nearing $1B in profit per quarter is insane. Is it now? I don’t think Wal-mart or GM would agree.
But I digress, stock splits have little if anything to do with company profits, eithe rtheir growth or proximity to $1 Billion. What they have to do with is the psychological effect a lower priced stock has in the market.
Stock is fractional ownership in a company. Split it 2-for-1 and the net result is nothing but to lower the pershare price because the number of shares outstnading just doubled, as did everyone’s position. But people like buying $50 stocks more than $100 stocks because they perceive the chance of it doubling as being higher. Likewise, people like owning 2 shares at $50 more than 1 share at $100.
So when you make statements about profits increasing at a certain rate to approach a certain level, please do eveyone a favor and do not mention stock splits in the same sentence.
“”Apple shares hit new all-time high” is such a tired catch-phrase.”
But i like hearing it anyway!
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Notice how the 52-week low is almost always 52 weeks ago? That’s a sign of consistent growth.
Doesn’t really matter if it splits or not. Maybe they should wait until it hits a $100 a share? I don’t mind waiting until January.
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I should have known better. I forgot that blogging encourages others to examine every word in an individual post to the extreme. Maybe Apple will split, maybe they won’t. I could care less what psychological reasons might make the stock split or, for that matter, what technical “Street” justification would merit a split. I have nothing to back-up why Apple will likely split in 2006, it just seems logical given their situation.
Regardless, Steve has been very good to me (and I’m grateful). Here’s hoping this thrill ride continues for many years to come.
Hey, me:
If a low per share price is good for investors, please explain Berkshire Hathaway, whose closing price today was $87,900.00?
“If a low per share price is good for investors, please explain Berkshire Hathaway, whose closing price today was $87,900.00”
Based on his statement the explanation has to be that Berkshire Hathaway’s price is bad for investors. The burden of proof lies on you to contradict it, which may or may not be easy to do, but just throwing out the name of a high priced stock and requiring someone else to explain it to you doesn’t cut it.
Low price per share is better because it allows more investors to play and the money buys more stock.
If you had $1000 and bought $100 stocks you’ll have 10 shares.
If you had $1000 and bought $10 stocks you’ll have 100 shares.
Now take each set of shares and have them go up $5 each and sell, which made more profit?
Berkshire is high because there are very few outstanding shares.
@ Nuclear Kid.
I’m with you dude. Im hoping Apple goes for a stock split at around $90 dollars although I am actually looking at purchasing some stock before they get to $80 pershare. The reason Apple would split would be to stop the shares from ‘appearing’ to be over valued even though this would double the number of shares to 3.6 billion. This would bring the price per share back down to $45 pershare which would be vary attractive to potentail stock holders.
For the record – Microsoft does about $9,000,000,000.00 profit per quarter which apparently still isn’t enough to keep investors happy!(well they are worth $285 Billion) so $9 Billion is actually only a small percentage of that.
Don’t forget also that Microsoft has a 95% market share of personal computers vs Apple’s 4%
So Apple’s stock valuation probably looks a bit high to some anal-ysts.
The difference is that we ‘get it’ and ‘they’ dont
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Apple Computer Inc.’s sleek iPod nano music player was among the top-selling electronic items on Amazon.com on Friday and some models sold out on a top retailer’s Web site as consumers stocked up on holiday gifts on one of the year’s busiest shopping days.
The stock of Cupertino, California-based Apple was the fifth-best performer on the Standard & Poor’s 500 Index on Friday, climbing 3.3 percent to close at $69.34 and helping the index hit a 4-1/2-year closing high.
Apple’s black iPod nano with 2 gigabytes of storage, or enough to hold 500 songs, was the sixth best-selling electronic gadget on Amazon.com’s list of most popular items, which is updated hourly. A white version was No. 10 on the list. Amazon was selling the nanos for $199.88.
Retailer Best Buy Co.’s Web site was sold out of both the white and black versions of the 4-gigabyte nano priced at $249.99. A spokeswoman for the retailers said Best Buy limited the number of connections to its site due to heavy volume related to the launch of Microsoft Corp’s Xbox 360 video game console this week.
iPod Nano 4GB (Black)SOLD OUT!
From Amazon
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Apple 4 GB iPod Nano White by Apple Computer
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Apple 2 GB iPod Nano Black by Apple Computer
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Zeke: “Look for a split when the price hits $80 about February.”
No way. AAPL’s going to hit $80/share well before February. At this rate, I’d guess within 3-4 weeks. Immediately after MacWorld at the latest.
Man, it would be sooooo cool if once, just this once, they’d split 3-for-1 instead of their usual 2-for-1. Then I’d be all “3600 shares, here I come!” And my wife’d be all “Oh, yes you do!” And I’d be like “Break out the hot toddies, we’re goin’ uptown!” And she’d be all like “Get behind MY ass cuz I’m already there!” And I’d be down with “Ain’t NUTHIN’ like this shit!” And she’s be all about “Hire me a maid cuz this cleanin’ ‘n cookin’ shit’s so OVER!”
The reason I bought Apple shares is their POTENTIAL:
• Macs have the potential for a huge share of consumers (and consumers are how they dislodged IBM from the workplace)
• iPods have the potential to reach all ages, all music styles in all cultures
• iTMS downloaded songs have the potential to replace CD shop purchases on a massive scale
• iTMS downloaded Podcasts & audiobooks have the potential to replace magazines and library books on a massive scale
• iTMS downloaded videos (& eventually movies) have the potential to replace video shop and WalMart DVDs on a massive scale
• Apple store purchases have the potential to replace toy and entertainment purchases on a massive scale
• an Apple-made mobile phone has the potential to replace phone contracts on a massive scale
• Apple’s MacOS has the potential to play on multiple chipsets and (through our pain) has been debugged through multiple transitions
• Apple usually gets multiple manufacturers to make each product ensuring they can keep up with demand on a massive scale
But the real reason I bought their shares is all 5 of us love to use their products every day. And if I love them so much, why not help others like them too. Isn’t that what friends do?
MW ‘quite’ as in it is a bit quite outside.
Remember the stock price is going up just because of iPod biz, not Apple computer biz.
The buzz is on the iPod bizz and fizz.
If the new Mactels are a bust (i.e. slower that PowerPC and comperable Windows machines & there is no “Wow” factor), the fizz will go out of all of Apples bizz.
Or there is a delay on introducing the computers… the market is expecting a early January announcement…a delay is bad news.
Boooooooooo…
Oh, I give up.
Boy am I glad I bought a thousand share a few years ago when it was at 14 dollars a share. Apple is making me a very happy man.
RE “winmacguy” COMMENTS ON 11-26. FOR THE RECORD, MICROSOFT DOES NOT DO, $9 BILLION IN PROFIT PER QUARTER. THEY HAVE REVENUE OF $9 PER QUARTER AND PROFITE OF ABOUT $3 BILLION PER QUARTER FOR A PROFIT MARGIN OF ABOUT 33% WHICH ISN’T TOO BAD IS IT. AND PEOPLE COMPLAIN ABOUT EXXONMOBIL HAVING A PROFIT MARGIN OF ABOUT 10% IN LAST QUARTER WHICH WAS THE BEST QUARTER THEY EVER HAD. GO FIGURE.
I EXPECT ANOTHER SPLIT IF AND WHEN THE STOCK PRICE HITS 90.
Nuclear Kid, I think your reasoning is dead on. February may be a bit early, actually, for the stock to hit 80. I think that after the Christmas Season, it’s all going to be riding on the new Macs, and I expect investors to be very cautious. However, I do expect that Apple is selling more iMacs this Christmas than ever before, and that news will help. As far as the intel Macs, I think they will go over very well. I’m hoping for a split in March, and being in this exact same place by the following Christmas with the new Macs being the big item alongside iPods.
Ahhh, I only wish I had bought stock back in the day. I think that Nuclear Kid does have a point. Given the past stock split at a price point below that currently being traded I wouldn’t be at all surprised if another was coming. I do however find the concept of a stock split amusing when we are talking about prices around the $70 mark. Why would someone be more likely to purchase twice the number at half the price? Unless they were only thinking of buying one share, and they only had $35 in their back pocket
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Tim Coughlin
http://timcoughlin.typepad.com