AAPL stock price gapped higher last week, climbing to the 590.00 levels in a couple of days. This was spurred by a stock split, leading some to load up on their shares of Apple.
In particular, the company announced a 7-for-1 stock split and encouraged more to buy the company’s shares. This stole the limelight from the company’s earnings report released along with other tech giants last week.
With that, AAPL stock is up by more than 8% since Thursday’s trading as Apple 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.
AAPL Stock Price Forecast
Of course stock splits tend to result to lower share prices later on, and with that AAPL stocks could fill the gap when the announcement was made. AAPL stock price could retreat back to its previous trading levels around $570.00. The stock split will be effective on June 9.
This marks the fourth time that Apple company has announced 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 and forget about the other fundamentals considered when buying AAPL stock, such as the price-to-earnings ratio.
AAPL stock could keep climbing prior to the iPhone6 launch, which is expected for mid-October but until then, buying momentum could wane and present a good opportunity for a quick short on AAPL stock until the gap after the stock split announcement gets filled.
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