“Of course, the stock has since climbed past $320 quite on its own. It closed Tuesday at a record $355.20, up 0.94% for the day and more than 690% since the last split,” P.E.D. reports. “With the six-year anniversary of that Feb. 28 event approaching and talk of a stock split once again in the air, let’s examine the pros and cons.”
Full article here.
[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]
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I’m all for it. I’d love to get in on Apple stock, but can’t afford too many shares at the current price. Also, it’s easier to double from 40 to 80 than it is from 350 to 700.
No?
Short answer, NO!
8:1 reverse split to undo the previous three and shut the analysts up!
They should split it like a banana split into 100:1. That way each stock will be worth $3.58 and Michael Dell can now afford to buy a piece of the company by swapping his penny stock with Apple dollar stock.
It will double no matter what the price. Price is one of the biggest misconceptions of a successful stock. Less volatile at higher prices it seems. Remember. If you have $5000 and you get 10 or 100 shares. It’s still $5000
Oh no; not this crap again. People who are in favor of a split don’t understand much about the market. If AAPL needed more liquidity, that would be a valid reason, but liquidity doesn’t seem to be a problem.
If more people understood the difference between a stock’s price move and its percentage move, we wouldn’t have this constant hankering for a split.
2:1 or 3:1 and it will return to 300+ within the year.
The Chief
I would love it to split…but will it? Absolutely not as there is no reason to do so.
Not this nonsense again. Is MDN going to republish ever article where some idiot speculates on Apple splitting the stock because it’s “expensive”?
I agree with Mike. Higher prices means less volatility.
I say no thanks.
I’ll accept a split only if there’s a written guarantee if it splits 2 for 1 that it’ll go back up to $300 within a year.
How is Apple going to double at this rate? Apple shares are already lagging well behind median target prices and Apple can barely keep up with demand. Apple would have to more than double production rates on all its products to double the share price. Wall Street is hardly going to give Apple a free pass.
No.
Agree with Mike. Now, a stock buy back? I like that idea much more.
It doesn’t matter how large the numbers are or how many shares you own. You invest the amount you want to invest and that’s that.
To Mike’s point, I agree.
Case in point: last month my wife decided that holding 100 shares in Adobe, flat at 33 for 10 years, would be better converted into 10 shares of Apple at 330. Now, with AAPL trading at 357, she has made more with Apple in 1 month, than with Adobe in 10 years!
I’ve talked with several people who have said they would buy Apple but in their words, “It’s too expensive.” They think that because it is so high that it has not much room to grow. We all know that argument doesn’t hold water, but it does TO THEM. I think there are many people who think like they do. And if it does split, say 10-to-1, do you think that will sway any potential buyers AWAY from buying? I think not. So we have everything to gain and nothing to lose. And as the article stated, this market is already behaving like a manic-depressive, so adding more amateur investors isn’t going to make much difference in its volatility (70% is already owned by institutional investors who are supposedly cool, calm and collected – NOT!).
@MrMcLargeHuge
“it’s easier to double from 40 to 80 than it is from 350 to 700.”
No. It’s not.
Dell was once $40. So was Microsoft.
Stock splits are for the ignorant and uneducated . . . a company’s worth isn’t based on the stock price, but on the stock price times the # of outstanding shares. If you double the outstanding shares, the price of each share will drop in half, thereby still having the same total value. The only real difference is people’s perception that 30 shares @ $10 is better than 1 share at $300. IT’S THE SAME FRICKIN THING!!. Two things would change for real. Expenses related to keeping track of the shares would increase and a cheaper stock price would encourage more non-institutional investors. Institutional Investors tend to be more long-term investors then the those looking for a short-term profit.
and anyways, don’t you think Apple’s doing a-ok bucking the trend on everything and anything?? haven’t they amassed a significant warchest with ZERO debt?? haven’t they had one of the best stocks year in and year out for the past decade?? don’t you think they kind of have an idea as to what they’re doing?? Yes, you may be a shareholder/owner of Apple, but i can’t fathom that you might think that increasing expenses and lowering the barrier to entry is a good thing in this case.
And isn’t one of Apple’s pillars “you want a quality product, you pay a quality price”. You want a quality stock, then pay a quality price.
Hearing people talk about stock splits is like the old Yogism . . .
“Mr. Berra, would you like your pizza cut in 4 pieces or 8 pieces?”
“Oh, you better cut it in 4, I don’t think I can eat 8.”
Same amount of pizza, but more work to get it to 8 pieces than 4 pieces.
To answer the headline:
NOOOOOOOOO!!!!!!
Step back and look at the forest people. Perception *IS* reality. I talk to people every day who say that “Apple is too expensive” to buy. Spare me the detailed, sophomoric analysis of pizza cutting. The fact is that in a 10:1 split a lot more buyers would be jumping in at $35 per share. More demand equals higher prices. We all make money.
@Zeke –
If the error in Yogi Berra’s pizza-cutting logic is “detailed, sophomoric analysis” to you, please stay out of AAPL stock until right before I decide to cash out.
“I talk to people every day who say that “Apple is too expensive” to buy.”
Then thank God their stupidity isn’t affecting Apple in the market. Apple doesn’t need moron investors – those who know what they are doing are thankful to avoid the unnecessary stock price fluctuations that would be caused by ignorant investors jumping in and out of the stock.
Also, it may make price manipulation more difficult.
@Zeke
More buyers equals more volatility