Apple stock is ripe for a lull

“Investors expecting a continued pop in Apple Inc.’s stock after its split Monday may want to temper their enthusiasm,” Steven Russolillo writes for The Wall Street Journal.

“Based on the performance of past splits, the rally could be due for a short-term pause,” Russolillo writes. “Since 2010, 57 companies in the S&P 500 have split their shares. Those stocks have averaged a 0.2% gain the day they started trading on a split-adjusted basis, according to New York research firm Strategas Research Partners. A month later, they have risen just 0.5%.”

Russolillo writes, “But longer term, the average gains are more pronounced. Since 2010, these stocks have averaged a 5.4% increase three months after a split and a 28% surge one year later, Strategas says.”

Read more in the full article here.

Related article:
Apple stock splits 7-for-1 – June 9, 2014

18 Comments

  1. “Since 2010, 57 companies in the S&P 500 have split their shares. Those stocks have averaged a 0.2% gain the day they started trading on a split-adjusted basis”
    He forgets one thing – None of these companies were Apple! 🙂

  2. At the time of writing, Apple is 0.75% up, rather than the 0.2% that Steven Russolillo predicted.

    Steven Russolillo might want to temper his predictions about Apple. Apple isn’t an average company.

  3. Back in April when the split was announced AAPL was at an adjusted price of about $75. The price is now $93, a 24% increase, so I’d say the stock has already run.

  4. Just hope that while Apple stock is getting traction from the market, their products and vision will still bear the DNA of Steve, and not the market’s way.

  5. So far AAPL is up 1.65% and climbing. It could go down before the close, but I think it’s safe to say that AAPL is not your average company (with a .2% gain after a split).

    AAPL has also set a new 52 week high for intraday trading. 🙂

  6. Who cares about 1 day. More important is that there appears to be momentum and positive vibes for apple at the moment. That may help continue the stock rise.

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