“Right now, there are two or three things on Apple’s horizon that could be driving the stock price,” Paul Ausick writes for 24/7 Wall Street. “The company’s reported $3.2 billion deal for privately held Beats Music has hit some speed bumps since first being reported earlier this month. The latest bump was a YouTube video posted over the weekend featuring a Beats co-founder, Dr. Dre, in a less-than-family-friendly rant that appears to some to confirm the deal. Apple honchos were reportedly furious at the video.”
“Another possible reason for the new high is the seven-for-one stock split due to take place on June 9. Investors of record as of June 2 will receive an additional six shares for each share they hold,” Ausick writes. “Today is the last day to purchase Apple stock in time meet the five-day settlement period before Apple starts trading split-adjusted shares on the 9th.”
“A third possibility is that Apple’s Worldwide Developer Conference kicks off next Monday,” Ausick writes. “Our pick is that Apple is coming to its senses regarding the value of Beats Music. There was no compelling reason for the acquisition in the first place, and there is less now. That means investors can hope that Apple will use the $3.2 billion to buy something worth having, or return some of the cash to shareholders.”
Read more in the full article here.
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Why the Apple-Beats deal may be dead – May 27, 2014
Apple’s 7-for-1 split: What you need to know – May 27, 2014
A bunch of individual investors are CHASING the split… in any case… with the dividend in place it’s not a bad idea, but typically the stock drops a bit after the split is completed.
getting the stock prior to the iPhone (6) release hype is usually a good time… the 6 will obviously be the kind of stock moving hardware Apple hasn’t created since the 4.
If Apple thought Beats was $3.2billion (considering that any acquisition would give Apple access to their financials, right?), then the company was worth $3.2billion. Just because moronic pundits on the sidelines don’t see it, does NOT mean Apple was making a mistake in offering that much. Schmuck.
What’s driving Apple right now is the stock split. Everyone wants to get in now because they figure the price will really jump once the stock is trading for 1/7th of the current price. That and the usual speculation and rumor-mongering and all that crap.
All 3, plus the fact that all the fabricated BS that Apple down from it’s ascent to the moon is now very evident to all, as baseless and false, which means that for the past two years, Apple shares (which were even at their highs, undervalued) have been been a victim of FUD, hostile and manipulation.
Apple should have been where it’s now going long ago.
And you should be a billionaire. As should we all. And it should rain gumdrops and candy canes. Coulda, woulda, shoulda. You live in a fantasy world. The stock market is reality. Whether you like it or not. The stock market moves on potential and rumor as much as facts. You shouldn’t invest in the stock market unless you understand these basic principles. The stock market doesn’t move on something because you like it or it seems to be just swell. Just like war, life isn’t fair. Wall Street is no place for newbies and the uninformed. Just because you like a stock doesn’t mean that it can’t lose 45% of its value, just like AAPL. Defending their stock and complaining constantly about manipulation is a clear sign that an investor has no business investing in equities. Wall Street is no place for the naïve.
I was really getting tired of all the BS about lost innovation.
Apple has always developed revolutionary products in secret, while existing products evolve in yearly updates. This is how it was under Steve Jobs and how it is under Tim Cook.
Yet the analysts continued to ignore all the signs. For years the Mac Pro only got small performance updates, then all of a sudden last year we get the black cylinder Mac Pro.
The analysts have completely ignored the new server farms being built. What are they for? Storing random 1s and 0s?
And what have the engineers in the secret labs for new product development being doing for 3 years? Playing Candy Crush? For some reason the analysts only think Apple does R&D on iPods, iPhones and iPads.
And while bagging Apple for no innovation, the analysts revered Google & Samsung for beta products and vapourware prototypes.
Just look at Google glass. How anyone can wear that lopsided fugli piece of spyware and think they are cool is beyond me. (That idiotic bit of plastic, that sits on one ear is ridiculous) And don’t even get me started on the shit battery life.
The Galaxy S5 is barely a beta product, the flagship features are a joke. Neither the fingerprint reader or pulse sensor work.
The new Samsung curved TVs also seem pointless. All a curved TV does is cut down the viewing angle. Stupid. Real innovative, I don’t think.
The analysts also seemed to get caught up in so called innovative ideas and early prototypes that were nothing but PR stunts. Driverless cars, robots. balloon wifi hotspots, deliveries by drones.Technology that is years away and may never come to fruition.
Sentiment and future potential may be important when it comes to the stock price. But who do you back? Apple with its proven track record of bringing new revolutionary and innovative products to market. Or the competition, with nothing but vapourware prototypes and smoke and mirror shows.
Positive sentiment.
I’m no expert and I think the stock is irrational and driven by sentiment. At the moment there is positive sentiment with AAPL.
I’m waiting for a couple of false rumours and failure to meet analysts thumb sucks for sentiment to turn negative – hopefully doesn’t happen.
My guess at driving factors:
APPL is buying AAPL, making things suck for manipulators.
WS funds are slowly unloading AMZN & GOOG and moving into AAPL.
APPL announcements of new products and/or reveal new platforms next week.
Split, dividend and buyback commitment mean that APPL is shareholder friendly for the long haul.
Last quarter’s earnings results.
iPhone 6.
apologies for playing fast & loose with the ticker.
> Investors of record as of June 2 will receive an additional six shares for each share they hold,” Ausick writes. “Today is the last day to purchase Apple stock in time meet the five-day settlement period before Apple starts trading split-adjusted shares on the 9th.
Actually, the “record date” is mostly meaningless for a stock split. You can buy AAPL before the 6/9 effective date, before OR after 6/2, for the pre-split price, and get your six additional shares. It’s not as if trading in AAPL gets suspended between 6/2 and 6/9, or that if you buy AAPL during that interval for the pre-split price, you don’t get the six additional shares.
Based on that “misunderstanding,” I would not trust anything else this “financial expert” is blabbering.
Doesn’t it also depend on who you using to buy and sell stocks with as far as the settlement date?
Settlement does not really matter (for a stock split). If your purchase price is the pre-split price, you still get the six additional shares (after the 6/9 effective date), when the trade “settles.” All the “math” for the transition is done on computer systems in customer databases, instantaneously on the effective date (or more accurately effective “moment”), whether a transaction is complete or in-progress. Whether you pay the pre-split price or the post-split price, the value your purchased shares represent in Apple (for a given investment amount) is the same.
Things like settlement date and record date may have mattered back when stock brokers issued paper stock certificates; that was your proof of ownership, not electronic records in a database.
NOTE: Settlement DOES matter for dividends. You must own the shares before a specified “record date” to be entitled to receive the next dividends.