Announcement

Collapse
No announcement yet.

Apple 4 to 1 split

Collapse
X
Collapse
First Prev Next Last
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Apple 4 to 1 split

    https://www.cnbc.com/2020/07/30/appl...announced.html

    Cosmetic move? Or invitation for smaller dollar investor?

  • #2
    Yes.

    Comment


    • #3
      Seems pretty illogical... no reason for any stock to split unless they get under 5 bucks or over 500 imo. They could have waited, but I'd guess their brass must think there is something magical about being priced under 100 and then passing 100 barrier again and again. I dunno...

      Google and Amazon need a 10-1 or even 20-1 split to let more people buy a few shares each paycheck or make options contracts accessible to the masses, yet they stand pat while a stock that is medium price splits 4-1, lol.

      In the end, it is inconsequential. Percent gains or losses or % dividend are all that really matter. A stock being $2 or $2000 per share just doesn't matter unless you are talking college kids and old folks who are possibly making buys of $200 or $400 at a time. Sure, it lowers the bar a bit to trade covered options on AAPL from circa 40k down to 10k now, but that is really all it accomplishes. People who couldn't afford one contract a week ago are still not exactly market movers when it splits, lol.

      Comment


      • #4
        Originally posted by Max Power View Post
        Seems pretty illogical... no reason for any stock to split unless they get under 5 bucks or over 500 imo. They could have waited, but I'd guess their brass must think there is something magical about being priced under 100 and then passing 100 barrier again and again. I dunno...

        Google and Amazon need a 10-1 or even 20-1 split to let more people buy a few shares each paycheck or make options contracts accessible to the masses, yet they stand pat while a stock that is medium price splits 4-1, lol.

        In the end, it is inconsequential. Percent gains or losses or % dividend are all that really matter. A stock being $2 or $2000 per share just doesn't matter unless you are talking college kids and old folks who are possibly making buys of $200 or $400 at a time. Sure, it lowers the bar a bit to trade covered options on AAPL from circa 40k down to 10k now, but that is really all it accomplishes. People who couldn't afford one contract a week ago are still not exactly market movers when it splits, lol.
        People pretend that the market has this wisdom that can price stocks/commodities to it’s “true” value. But I think companies use various tactics to create momentum to access to what is basically an infinite cash pile. Looks like apple uses the split to make themselves seem cheaper. Small time investors arent the only ones who want better pricing on a stock.

        Comment


        • #5
          I think Apple wants to cash in on Robinhood investors. Easier to do when your stock is cheaper. How many common folk know about fractional shares?
          "Oh look another bajillion point declin-Ooooh!!! A coupon for pizza!!!!" <--- This is what everyone's IPS should be. ✓✓✓

          Comment


          • #6
            Pure liquidity in the market.
            Marketing neutral.
            Actually a rejection of the notion that prestige or quality is based upon a high stock price. $100 historically has been the nice round benchmark (right or wrong). Split based on moving the decimal. Lower value is useful in eps, dividends, stock options, buybacks and materiality.

            Comment


            • #7
              the one benefit I do see, as small as it is, makes it cheaper to get into some aapl options strategies. all the ratios are basically the same, but less capital needed

              Comment


              • #8
                Originally posted by burritos View Post

                People pretend that the market has this wisdom that can price stocks/commodities to it’s “true” value. But I think companies use various tactics to create momentum to access to what is basically an infinite cash pile. Looks like apple uses the split to make themselves seem cheaper. Small time investors arent the only ones who want better pricing on a stock.
                I know one company that does. As a matter of fact the CEO has 100% of comp based on stock valuation. For a billion I would assume a stock split would be considered if it pushed the valuation and meant a billion payday.

                Comment


                • #9
                  Originally posted by Cubicle View Post
                  I think Apple wants to cash in on Robinhood investors. Easier to do when your stock is cheaper. How many common folk know about fractional shares?
                  How much liquidity is actually sloshing around in the robinhood investor pool? I'm not convinced that there's enough to move the needle. But mutual fund managers(world wide) might be equally duped as the robinhooders.

                  Comment


                  • #10
                    So from apple’s POV splitting allows more people to buy.

                    From common person POV, many more will be able to afford a few shares.

                    By not splitting the stock, apple could just be owned by people who have ‘more money’. And people who have more money tend to be more stable. Thus if the stock isn’t split the stock is more stable?

                    By splitting, they allow those who don’t really have a lot of money to buy a few shares. And in doing they make the stock less stable? Cause less wealthy stock buyers might sell if they get a little spooked? Where as the wealthier ones can ride it out and make the stock more stable?


                    So do I have that right? ‘

                    Comment


                    • #11
                      Originally posted by STATscans View Post
                      So from apple’s POV splitting allows more people to buy.

                      From common person POV, many more will be able to afford a few shares.

                      By not splitting the stock, apple could just be owned by people who have ‘more money’. And people who have more money tend to be more stable. Thus if the stock isn’t split the stock is more stable?

                      By splitting, they allow those who don’t really have a lot of money to buy a few shares. And in doing they make the stock less stable? Cause less wealthy stock buyers might sell if they get a little spooked? Where as the wealthier ones can ride it out and make the stock more stable?
                      So do I have that right? ‘
                      No.
                      63% institutional holdings of Apple. Retail investors don't move the needle.
                      Ownership Summary
                      Shares/values are in millions.
                      63.31 %
                      4,334
                      $1,166,380
                      Stock analysts reacted positively to the news, remarking that the move will open up more liquidity in shares and potentially broaden Apple's investor base. Apple said on its third quarter earnings call that the split is intended to make its stock, which has more than quadrupled in value since Apple's last split in 2014, more "accessible" to more investors.



                      Comment


                      • #12
                        Originally posted by Tim View Post
                        No.
                        63% institutional holdings of Apple. Retail investors don't move the needle.
                        Ownership Summary
                        Shares/values are in millions.
                        63.31 %
                        4,334
                        $1,166,380
                        Stock analysts reacted positively to the news, remarking that the move will open up more liquidity in shares and potentially broaden Apple's investor base. Apple said on its third quarter earnings call that the split is intended to make its stock, which has more than quadrupled in value since Apple's last split in 2014, more "accessible" to more investors.


                        If Amazon had a 30 to one split, how much would Jeff Bezos net worth go up from that move alone? What is keeping him from doing it or not doing it?

                        Comment

                        Working...
                        X