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Apple Stock Splits 7-for-1, Opens at $92 With All-Time High Just Over $100

tgara

tgara

macrumors 65816
Jul 17, 2012
1,154
2,898
Connecticut, USA
TantalizedMind said:
For the past month I've tried to learn a little bit about stocks. So Apple's stock split 7-1. So if you owned APPLE stock before the split at $645.... did that $645 get split 7 times to make $4,515 or did all it do is was split your one share at $645 into 7 shares?

I'm assuming the latter since $645 divided by 7 is $92.
Click to expand...

That's right, if you had 1 share, you now have 7 shares at 1/7th the value each before the split. Your total investment does not change. If you had $10,000 worth of AAPL, you still have that, just more shares with less value each.

As others have said, one reason this is done is to make the shares less expensive and therefore more accessible to more investors, with the inevitable result of pushing up the price per share. So go out there and buy the stock, people, while it's relatively cheap! I'm going to watch my shares go up, up, up, in the coming days!
 
HowEver

HowEver

macrumors 6502a
May 10, 2005
843
338
Toronto
I bet you researched a lot of other topics in the last month, and did not concentrate on this one subject.


TantalizedMind said:
For the past month I've tried to learn a little bit about stocks. So Apple's stock split 7-1. So if you owned APPLE stock before the split at $645.... did that $645 get split 7 times to make $4,515 or did all it do is was split your one share at $645 into 7 shares?

I'm assuming the latter since $645 divided by 7 is $92.
Click to expand...
 
2499723

2499723

Cancelled
Dec 10, 2009
812
412
This is a serious question as I've never bought a share in my life. But surely it's unwise to immediately buy in after the split, because if $645 was quite high on Friday, then $92 is quite high relatively speaking today. Is that correct? If, for instance, I would have waited to buy a share until prices dropped to $500 per share prior to the split, then I should wait to buy a share until prices drop to, say something like $70 after the split. Does that make strategic sense? (I'm not going to immediately buy a share because Apple wants me to and puts a carrot on a stick with a seemingly 'low' buy-in option) =)
 
zen

zen

macrumors 68000
Jun 26, 2003
1,713
472
mac1984user said:
This is a serious question as I've never bought a share in my life. But surely it's unwise to immediately buy in after the split, because if $645 was quite high on Friday, then $92 is quite high relatively speaking today. Is that correct? If, for instance, I would have waited to buy a share until prices dropped to $500 per share prior to the split, then I should wait to buy a share until prices drop to, say something like $70 after the split. Does that make strategic sense? (I'm not going to immediately buy a share because Apple wants me to and puts a carrot on a stick with a seemingly 'low' buy-in option) =)
Click to expand...

They're not going to go down to $70. As they are now so cheap at $92 each, the demand will be high and the price will skyrocket.
 
N

neuropsychguy

macrumors 68020
Sep 29, 2008
2,385
5,687
What's the best is my brokerage has the correct number of Apple shares for me but still has the closing value from Friday so my "market value" shows up as 7x higher than it really is. It's nice as a dream until it gets fixed. :)
 
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ArtOfWarfare

ArtOfWarfare

macrumors G3
Nov 26, 2007
9,561
6,059
MacRumors said:
Apple could also be aiming for inclusion in the Dow Jones Industrial Average index. The Dow is price-weighted, meaning Apple's previous stock price of nearly $700 would have resulted in an significant reweighting of the index and a $92 would put it in the right price range for inclusion.

As the most valuable publicly traded company in the world, with a market cap of more than $550 billion, Apple could be a logical addition for the index. It would join a number of other high-tech companies listed including Cisco, IBM, Intel, Microsoft, AT&T and Verizon.
Click to expand...

What exactly would they gain from being placed in the Dow Jones Industrial Average index? Is it more symbolic than anything else?
 
N

neuropsychguy

macrumors 68020
Sep 29, 2008
2,385
5,687
mac1984user said:
This is a serious question as I've never bought a share in my life. But surely it's unwise to immediately buy in after the split, because if $645 was quite high on Friday, then $92 is quite high relatively speaking today. Is that correct? If, for instance, I would have waited to buy a share until prices dropped to $500 per share prior to the split, then I should wait to buy a share until prices drop to, say something like $70 after the split. Does that make strategic sense? (I'm not going to immediately buy a share because Apple wants me to and puts a carrot on a stick with a seemingly 'low' buy-in option) =)
Click to expand...

Shares within the past 2 years have been as high as $700 and as low as $390. AAPL has steadily climbed for the past year. It could keep going up or will go down - that's how stocks are; people buying and selling them are not entirely rational. However, it's a pretty safe bet to assume that AAPL will go higher over the coming year; a 10-20% increase would be quite likely given the product pipeline of APPL. However, investors are not always rational so it's possible that you could buy in and lose a lot of money if you don't hold onto shares long enough. AAPL is the kind of stock you buy for the long-term and not for day trading.
 
G

griz

macrumors 6502a
Dec 18, 2003
583
222
New London, NH
On Friday you could have bought $100 worth of AAPL and today you could buy $100 worth of APPL. Both give you an equal share in the company.
You are just getting more fractions of a larger number of shares today than on Friday. Sites like Sharbuilder and Ameritrade allow you to buy fractional shares so it's really a non issue. Mostly psychology.
But feel free to buy buy buy.
 
anthonymoody

anthonymoody

macrumors 68040
Aug 8, 2002
3,061
1,153
ArtOfWarfare said:
What exactly would they gain from being placed in the Dow Jones Industrial Average index? Is it more symbolic than anything else?
Click to expand...

There are mutual funds that index (track) the DJIA so inclusion in it also means an instant step up in demand as those funds would then need to buy AAPL.
 
A

amirite

macrumors 6502a
Aug 17, 2009
880
691
nfl46 said:
I'm sure some stockholder woke up this morning, saw Apple stock so low and completely freaked out! :eek: Lol.
Click to expand...

Haha I was very briefly worried when I forgot that GOOG had split into GOOG and GOOGL. My interactivebrokers account still counts it as a loss in my unrealized P/L :rolleyes: IB handles the AAPL split better though, since it's a regular old stock split.
 
newtito

newtito

macrumors member
Nov 6, 2006
54
18
If only...

Stories like this always make me regret not purchasing Apple Stock when I wanted to. Back in 2001, I was a junior in college and I just bought a MacBook for $1,499. I told myself, "I should invest in Apple..." Well, I saw an article recently on BusinessInsider.com stating that if I had invested that $1,499 and sold it in 2012(which I probably would never have done anyway), that stock would have been worth $99,747.
 
macduke

macduke

macrumors G5
Jun 27, 2007
13,142
19,681
Clearly Apple is doomed because that number is so low. We only want high numbers! Everybody freak out!!

Seriously though, I came really close to buying some Apple shares when it was down in the low 80s in early 2009. That's a shame. Not sure what to do in this situation following a split. Won't likely get a 7x ROI in five years this time, but maybe 2x which is still quite reasonable. Apple has shown with iOS 8 that they're willing to adapt and play ball. They're a new company now, finally finding their voice post-Jobs. I'm confident that they are heading in the right direction. The only problem is the incredible potential for growth is no longer likely, except perhaps for wearables.

I think the next big thing in tech (that people will also be investing in) is 3D printing. That really has the potential to change the world. Work is being done printing food, kidneys, pills, tools, weapons and more. It's a playground of wonder and it's early enough in the game to make a decent amount of cash. I've been researching just need to decide where to put my money.
 
I

itguy06

macrumors 6502a
Mar 8, 2006
849
1,139
nfl46 said:
I'm sure some stockholder woke up this morning, saw Apple stock so low and completely freaked out! :eek: Lol.
Click to expand...

I'm sure - I've gotten many e-mails from my broker on this split. Never have had that happen before with stock splits.
 
S

sransari

macrumors 6502
Feb 11, 2005
363
130
mac1984user said:
This is a serious question as I've never bought a share in my life. But surely it's unwise to immediately buy in after the split, because if $645 was quite high on Friday, then $92 is quite high relatively speaking today. Is that correct? If, for instance, I would have waited to buy a share until prices dropped to $500 per share prior to the split, then I should wait to buy a share until prices drop to, say something like $70 after the split. Does that make strategic sense? (I'm not going to immediately buy a share because Apple wants me to and puts a carrot on a stick with a seemingly 'low' buy-in option) =)
Click to expand...

If you thought it was high at $645, then yes, your analysis would say that it is equally high at $92.

On another note, it's not always best strategy to attempt to "bottom-fish" as nobody knows where the bottom or top truly is. Who knows...this $92 price could be the bottom, or it could dip to $70 as you speculate, or less. With a company like AAPL, a steady, routine investment makes sense over wild guessing, since AAPL has proven to be financially strong in a variety of economic climates.


On yet another note, this stock split is unlikely to move prices significantly. Yes, it will help small time investors purchase AAPL stock as part of a routine savings plan, but most of AAPL traders are institutions and fund managers, who don't care whether the stock is $645 or $92 split 7 ways.

----------
zen said:
They're not going to go down to $70. As they are now so cheap at $92 each, the demand will be high and the price will skyrocket.
Click to expand...

The demand is virtually unchanged as a result of the split...it's completely nonsensical reasoning to assume that a split in of itself would automatically increase demand in any significant way.
 
HobeSoundDarryl

HobeSoundDarryl

macrumors G5
Feb 8, 2004
12,248
15,642
Hobe Sound, FL (20 miles north of Palm Beach)
TantalizedMind said:
For the past month I've tried to learn a little bit about stocks. So Apple's stock split 7-1. So if you owned APPLE stock before the split at $645.... did that $645 get split 7 times to make $4,515 or did all it do is was split your one share at $645 into 7 shares?
Click to expand...

Seriously??? Too bad Apple didn't do a 1,000-1 or 10,000-1 split per that math. If they could have done a 1,000,000-1 split, we could all "just buy Samsung" or "just buy Sony" or "just buy ________"

zen said:
They're not going to go down to $70. As they are now so cheap at $92 each, the demand will be high and the price will skyrocket.
Click to expand...

The stock can fall to $70 as easy as it can skyrocket. It's not any cheaper than it was on FRI. There's simply a lot more shares that have diluted the value to this level. To skyrocket back to $700 would be like the pre-split shares at $600 skyrocketing to about $5,000 per share.

What should happen here is that the volatility of the stock rising or falling at a few dollars on any given (typical) day will now shift to rising or falling a fraction of that. In other words, if you were accustomed to seeing Apple rise or fall a couple of dollars on any given day, now expect to see that very same action divided by 7. $92 running to $100 is now a LONG way to go. $92 falling to- say- $85 is now a big fall. Any big move is harder now that there is 7X more shares than before.
 
jayducharme

jayducharme

macrumors 601
Jun 22, 2006
4,534
5,991
The thick of it
Cuban Missles said:
Not that I was in a position to invest in apple in 1980, but oh man to have bought just 100 shares at 22 a share at IPO. I think that alone would be worth over $500k today. I need a time machine. Anyone? Please!
Click to expand...

Purchase a time machine for $500k. Go back in time and make your investment. Then come back to the present time. Your net result: $0. (But you would be the first person on record to time travel...) :D
 
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