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. I doubt it. Not when other major announcements are probably around the corner. This was only the software side of things. Hardware side is next and will probably be huge. As always the anal-ists get it wrong and always try and put Apple down for no darn reason. Let’s wait and see because if there is going to be a lull it will be a very short one I’m sure.

  2. it is NEVER a good idea to buy into a stock after a split. Let the market determine the adjusted value. BTW- the stock split is a zero sum game for profit takers and value seekers.

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