Stuffed into the last half of 2014 are new releases of OS X and iOS, Yosemite and iOS 8, respectively, a much awaited line of new products and upgrades, and a chance for Apple watchers who couldn’t afford Apple stock to get in on the run to an all time high.
About $6 To Go
Assuming you were not trying to row a boat across the Pacific ocean for the past month or so, you’ve probably heard that Apple split the company’s stock, 7 to 1.
That means for every share you owned of Apple’s notoriously expensive stock, you now have seven shares.
Here’s why that split is important for Apple, shareholders, and customers.
First, Apple’s all-time high stock price came on September 21, 2013– $705.07. Since then, AAPL has dropped and bounced back. How much of a bounce?
Well, the split-adjusted price of the all-time high of $705.07 is now a paltry $100.72. Apple’s stock traded today at just over $94 a share, or barely six dollars per share below the all-time high.
Whoa! When and how did that happen?
The stock split has been planned for a long time. Most stock splits are two-to-one, but Apple chose 7 to 1. That puts more shares into the market, and makes the price tag much more affordable for the masses who long to get in on Apple’s AAPL action.
After all, owning 10 shares of Apple stock last week would have cost you about $6,500. Today you can own 10 shares for a little over $900. That’s a bargain by comparison.
As to the timing, Apple’s executives know what’s in the product pipeline and when it’s due to hit the streets– the latter half of 2014 seems obvious now. All the hype from new products can push the stock to ever higher levels (it’s affordable now), and easily beyond the all-time high set in 2012.
The day after Steve Jobs died in 2011 Apple’s stock price closed at just over $377, which means that under Tim Cook’s guidance, AAPL has nearly doubled in value, and is poised to go even higher.
I’m beginning to think that Apple’s executives know more about the company than Wall Street’s charlatans and the technorati elite who complain about every little thing the company does or does not do.