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MacRumors

macrumors bot
Original poster
Apr 12, 2001
63,791
31,261



Apple today saw its stock hit the $100 mark for the first time since its seven-for-one split that took place in early June. Following the split, Apple was trading at roughly $92 a share, but since that time the stock has trended upward until hitting the $100 mark today.

aapl_100.jpg
The company is also very close to an all-time high stock price, accounting for the stock split. Apple's all-time intraday high was set on September 21, 2012 at $100.72 ($705.07 on a pre-split basis), and the all-time high closing price was set just a few days earlier on September 19 at $100.30 ($702.10 pre-split).

Even as Apple sits at almost record high share prices, the company is not ready to set a new high for overall market capitalization, which is calculated as the share price multiplied by the number of shares available. That is due to Apple's aggressive stock buyback program that has seen the company reduce its share count by almost 600 million over the past two years.

The move is intended to boost value to investors by reducing share supplies while also putting to use some of Apple's vast cash holdings. Much of the share repurchase program is, however, being financed by low-interest debt, as the majority of Apple's cash is currently held overseas, and it would be considerably more expensive for Apple to pay required taxes on that cash to bring it home for domestic uses than to simply pay for the repurchase program out of its ongoing domestic earnings over time where tax is already being paid.

The repurchase program has also signaled to investors that Apple has believed its stock to be undervalued, demonstrating the company sees purchasing its own stock as a better use of cash than other investment opportunities. And finally, reducing share counts also eliminates future dividend payments that would have been made on those now-retired shares, providing an additional financial benefit to the company.

Update 1PM PT: Apple's stock price closed at an all-time high of $100.53, breaking its previous closing high of $100.30 ($702.10 pre-split) set on September 19, 2012.

Article Link: Apple's Share Price Hits $100 for the First Time Since June Stock Split
 

dlewis23

macrumors 65816
Oct 23, 2007
1,149
1,827
Can't wait to see where the price goes after the iPhone 6 launch weekend.
 

IJ Reilly

macrumors P6
Jul 16, 2002
17,909
1,496
Palookaville
Normally I don't look at stock tickers but I just happened to be in my portfolio when the ticker for AAPL bumped to $100.00. It's been running between $99.97 and $100.00 for the last fifteen minutes or so without ever getting to $100.01. Okay, so this is an excellent reason for NOT looking at stock tickers.
 

Rogifan

macrumors Penryn
Nov 14, 2011
24,332
31,468
Why do I get the feeling this is a run up to an eventual sell off when the new iPhone is announced. The old buy on the rumor sell on the news.
 

sransari

macrumors 6502
Feb 11, 2005
363
130
Can't wait to see where the price goes after the iPhone 6 launch weekend.

The iPhone 6 launch is already priced in to today's selling price, so the announcement probably won't budge the stock price much (just as previous iphone announcements didn't affect stock price very much). Just look at the history. The stock prices after the first couple weeks of past Septembers were sometimes up a little, sometimes down a little. No real pattern and no drastic movements either way.
 

Rogifan

macrumors Penryn
Nov 14, 2011
24,332
31,468
This old saw never fails to amuse. So, under this scenario, what is the rumor, and what is the news?

Rumor? Everything we're hearing about iPhone and "iWatch". Let's say there aren't two new phones and no sapphire display. Let's say all we get is 4.7" model with improved camera and Touch ID. And no wearable yet. I could see the stock selling off on that.
 

IJ Reilly

macrumors P6
Jul 16, 2002
17,909
1,496
Palookaville
The iPhone 6 launch is already priced in to today's selling price, so the announcement probably won't budge the stock price much (just as previous iphone announcements didn't affect stock price very much). Just look at the history. The stock prices after the first couple weeks of past Septembers were sometimes up a little, sometimes down a little. No real pattern and no drastic movements either way.

Exactly. The iPhone 6 is hardly a mere rumor at this point. Sales are already being modeled into Apple's earnings, though that would be mainly for Q1 2015.
 

Tankmaze

macrumors 68000
Mar 7, 2012
1,707
351
This kinda thing always happen in august - September when apple would surely introduce new iPhone. Great to see apple stock rise again.
 

sransari

macrumors 6502
Feb 11, 2005
363
130
AAPL keeps beating the Dow and S&P which is a gr8 sign of a quality stock, but AAPL is just as vulnerable as other stocks in the major indexes. So be weary of an impending market correction, as the overall market bubble has to deflate sometime (probably not till the dow is at 18k or so, although obviously nobody can time it precisely).
 

Plutonius

macrumors G3
Feb 22, 2003
9,052
8,421
New Hampshire, USA
Can't wait to see where the price goes after the iPhone 6 launch weekend.

It will go down. People are pumping this stock to get it as high as possible so they can short it just before the launch. Even if the iPhone 6 is an excellent product and the launch goes smoothly, you will see lots of negative articles and the price will go down.
 

lanirugzo

macrumors newbie
Dec 18, 2012
4
0
Wrong.

Apple bought back billions of dollars worth of stock since Sep 12. Hence, the all-time high is closer to $110 with the shrinking outstanding share number, not $100. I don't know why the financial media (and Macrumors) disregard such a trivial and obvious fact.
 

liavman

macrumors 6502
Sep 22, 2009
462
0
Erik: Good job with that article. Well written covering all the bases especially the fact that while the price is nearing the all time high, the market cap is not.
 
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