“Just over 2 years ago, Apple announced a two-for-one stock split. Last week, MSN opined that Apple shares would double by 2010. And the week before, Apple CFO Peter Oppenheimer spoke at the Morgan Stanley Technology Conference and answered a question about a possible stock split by saying ‘We have nothing to announce today,'” LoopRumors reports.
Today, however, LoopRumors has learned that Apple is in very serious discussions about another stock split.
Full article here.
Related articles:
Apple Inc. stock split? – January 11, 2007
Apple announces two-for-one stock split – February 11, 2005
So what say you? Would it matter?
Yes, a lower price per share attracts more buyers.
divide and conquer
Come on, all you SUPPOSED experts in all things financial and political. Surely you know more about this than anyone else in the world. Let’s hear it! A brief sampler of ideas: “The American and world economies are doomed. Bush is a turd. Steve Jobs is a liar and a cheat. America is the Great Satan. All business transactions are conspiracies. Corporations are the embodiment of evil. Only the poor and downtrodden will see the face of God. Etc., etc., etc.
Let ‘er rip, geniuses!
doesn’t matter fundamentally – just more pieces of the same pie. only matters in terms of pereception. people will think that the stock is cheaper but it’s not. it’s obvious that Berskshire Hathaway is a cheaper stock than Yahoo even though one trades at over $100,000/share and the other trades at $30/share. if you can’t see that, then stick to mutual funds/ETFs.
who cares!?! Where’s my appleTV!!!!??
I’ve been through two stock splits now, and each time the stock temporarily dropped after the split. Last time I was wise and sold just before the split, and bought back in a short while after. So I was able to more than double my shares and it is back up above where it split last time ($86 I think) in just two years. So I say, bring it on!
I don’t like stock splits …..they ride so far up your ass. They remind me of limericks ..they smell nice but they burn real bad.
….which brings me back to my original point ..which I’m currently rounding off.
I think Apple has enough outstanding shares. Let it rise a la Google. Premium price, premium company.
Thank goodness for LoopRumors.
That’s how I usually get my stock advice.
“America is the Great Satan.”
Then, to paraphrase Blue Oyster Cult, let’s send them to hell.
Works for me.
I bet that for a lot of young folks Apple might be one of the first stocks they consider buying. A lower price would make that easier for them.
What better way to get people on board with your brand than to have them own a share of the company?
I don’t see Apple letting the stock rise forever a la Google, Hathaway, etc.
Midlothian, I’m no expert, but here are some assertions that you can count on.
1. I own Apple stock, not a lot, but I’m glad to have what I have.
2. If I had the money, I’d buy more just after the split, if a split happens.
As far as prognostications are concerned, I have only this one: the sun will set this evening and rise tomorrow morning. Any other claims that I, or anyone else, could make are buncombe until they are proven otherwise.
“Apple has today released their new Operating System ‘Leopard’ to compete with the almost universally panned Microsoft’s Vista.
“To the delight of many, the ‘Leopard’ operating system almost appears to be alive, so deeply embedded is animation into every corner of the desktop.
“‘Leopard’, however, is only the the latest offering from the Cupertino, California, company that has experienced quite a resurgence in recent years. From a lowpoint some five years ago, Apple has ridden the great success of the iPod to a level of profitability never before seen.
“Indeed, the buzz around upcoming iPhone has been near deafening, and the recent stock split saw prices rise another 10% inside of the week.
“Apple appears to be one one tech company that consumers have taken quite a shine to, and which shows no signs of slowing down.”
MW: not
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2 digits versus 3 digits is what it means. Less ink less paper. Who says Apple isn’t a green company?
So let me get this straight — you’re agreeing with the Ayatolla Khomeni (not a paragon of civil rights, tolerance, freedom, or anything remotely modern), just to defend your own political dislikes? That is so shortsighted I’m almost speechless. But I guess I shouldn’t be surprised. Similar idiots like George Bernard Shaw said that he’d welcome Hitler as a liberator when the invasion of England started. Funny how things look different when you have to pay the price for your rhetoric, isn’t it?
If more liberals would learn about Islam and how it functions, there’d be a lot fewer liberals and about 1/10th the smoke about how great Islam is. (Here’s another clue, guys — defending people who want to behead anyone who mocks Mohammed makes you 10 times worse than even the most extreme Christian who argues that porn isn’t free speech.)
As soon as the stock gets into the 100 to 110 range and stays there for at least a few weeks, there will be an announcement of a stock split.
Caution is advised here.
…just got off the phone with a bunch of economists/analysts.
The gist:
“Normally, a stock split would signal optimism on the company’s part, and maybe that is the case here.
BUT….
it could also be a trick indicative of serious panic on the part of the Apple Board.
If Apple fears that their stock will crash in response to negative news in the near future, splitting it now might buffer the impact. If the stock trades at 90 now, bad news could easily cause it to plummet 10-15+ in the first day, and maybe similarly the next day. If it splits to $45, the probability that it would crash to $10 is far less likely. So whereas $90 dropping to $55 is very possible, $45 going to $10 is not.
Given that Disney has already encircled the wagons to protect their leader, and offers of un-backdating and other acts of appeasement have already been put forth, you have to ask yourself: Confidence in a rosy future? Or, defensive maneuver in anticipation of serious trouble?
These are tricky people — don’t take anything on face value.”
“Here’s another clue, guys — defending people who want to behead anyone who mocks Mohammed makes you 10 times worse than even the most extreme Christian who argues that porn isn’t free speech.”
Yeah, because Christians certainly never killed anyone in the name of god…
This isnt a rumor, it’s speculation and there’s a huge difference.
Either way, I’d like to see it.
Split happens.
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LOOP RUMORS? MDN is now citing LOOP RUMORS? Have you guys lost your freakin mind?
I just finished talking to some other people, and I had to come back to say that the example I gave was misleading. Sorry.
If a stock crashes by $50 dollars in value before a split, it only needs to crash by $25 after a split to do the equivalent damage. But the logic remains, namely the higher a stock trades for, there is the perception that it can still “absorb” a big drop when there is bad news. Whereas when it is trading at a lower price, it doesn’t have that far to go before investors start to say “yea, but it couldn’t be that bad” and stop dumping their shares. So, by splitting you can buffer against a horrendous stock crash in your company stock when calamity strikes.
There’s much arguing back an forth on whether a stock split is good or bad. I’d say it’s neither. For instance, Berkshire Hathaway has NEVER split, but that’s no indication as to the quality (or future upside) of that stock. Other stocks (like Home Depot, for example) have split numerous times in the past but have been poor performers lately.
I think much of the positive vibe surrounding a stock split centers around the fact that a split is the opposite of a reverse split — a move that has significant stigma attached. Since some investment banks only invest in stocks above a minimum share price, say $5, being forced to perform a reverse split to keep your stock above the minimum price is a bad sign. On the other hand, allowing a stock split to move your stock price closer to the minimum shows confidence that the stock won’t drop, but that’s about all it does.
While some investors may see the lower price as an opportunity to buy, that won’t be enough to affect the stock price very much. To belong to that group, you must be, by definition, an investor with limited available funds (or so uninformed as to believe that a low stock price is a good indicator of the potential upside…)
@ osama
nobody is denying that Christians haven’t done terrible things in the past. the difference is that Christians have actually matured since the 7th century unlike the so called religion of peace.
anyway, how did these comments end up on this story.?