After the recent stock split news for AAPL stock, the share price has gapped higher and rallied to the $600 mark. Price has consolidated for quite some time but it appears that buying pressure is still building up.
Recall that traders loaded up on their AAPL stock holdings a few weeks back, when the tech company announced a 7-for-1 stock split. This encouraged more stock traders to buy the AAPL stock and stole the limelight from the company’s earnings report released along with other tech giants in the same week.
AAPL Stock Forecast
With that, AAPL stock became the fourth member of the S&P 500 to announce a stock split this year. This move is seen to be management-driven, allowing the owners and stakeholders to have a more flexible way of controlling the company. Stock splits do tend to result to share price weakness in the weeks following the announcement, as traders price in the prospect of lower share prices, but this doesn’t seem to be the case for AAPL stock.
In contrast, traders seem willing to load up on more shares in anticipation of strong gains after the actual stock split takes place. This would happen right before the time that Apple has its keynote address, during which new software updates or gadgets are announced. Expectations are running high for the unveiling of a new iPad or iPhone by October with the stock split becoming effective next month.
Bear in mind that this is the fourth time that AAPL stock has undergone a stock split. This should make the company’s stock more accessible and affordable for public investors and possibly a strategic move for the company to join the Dow Jones Industrial Average.Others say that the stock split was mostly a result of a vote of confidence in management. This way, retail investors won’t be too intimidated by the high prices.
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