“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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