FinanceSQ

Apple’s Stock Split: What Is Happening Next

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Apple’s stock began trading this morning at its new split-adjusted price of $124.81, and as soon as the opening bell was heard, stocks began trading higher.

Apple announced the 4 for one stock split as part of its Q3 2020 earnings report, saying that the move would “make the stock more accessible to a broader base of investors.”

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There was even great news for Apple investors, who received an additional three shares of Apple at the new price.

This year Apple’s stock has been on a tear this year, with a huge market cap hitting $2 trillion on Aug. 19.

Experts claim that Apple’s new pricing doesn’t mean anything for Apple’s own market value, and there is a reason for that – the price of a single share may be lower, but the split will create more individual shares.

Analysts agree Apple’s future is bright and that Apple has the potential to grow even more, especially in the next 12 to 18 months. That growth will come from as many as 350 million of Apple’s 950 million global iPhone users who are ready to upgrade to Apple’s upcoming iPhone 12.

Still, since unemployment rates are still high, it will be interesting following the market trend. It will be difficult for many consumers to justify spending hundreds of dollars on a new smartphone at this time.

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