Apple Inc Investors Watch Out for $100 Stock Price Surge Ahead of iPhone 6 Release
By Reissa Su | June 13, 2014 11:23 AM EST
When Apple Inc announced a 7-to-1 stock split in April, investors knew it will bring the company's price per share down. After Apple's stock price dropped 85 per cent after the split, the stock has become a more attractive investment.
A man looks at his Apple iPad in front an Apple logo outside an Apple store in downtown Shanghai March 16, 2012.
Before Apple made the announcement, shares fell 6.5 per cent compared to the previous year. After April 23, the stock has rallied to and even surpassed the $600 mark, which is a price not seen since 2012.
According to Forbes, part of the reason why Apple shares continue to rally is the stock split since potential investors are more attracted to buy with a less than $100 price per share. It also opened up an opportunity for smaller investors to buy Apple shares at a lower price.
After the stock split, Apple has the chance to be added to the Dow Jones Industrial Average which was previously impossible because of the company's pre-stock split price of more than $600.
Analysts agree that Apple has many going on in its favour, including an increase in share buybacks and dividends. Software developers around the world seem to love the new tools the company has unveiled in the recently concluded Worldwide Developer's Conference (WWDC) despite the lack of new hardware announcements.
Apple has also acquired Beats Electronics for $3 billion and gained the expertise of founders Jimmy Iovine and Dr Dre to the company.
Since the stock split was announced, Apple stock soared to more than 23 per cent. The stock split would have reduced the stock price to $75, but the stock was sold for about $92 per share. Forbes said Apple investors should wait for the price to be $100. Reports said Apple had reached its stock price peak in September 2012.
Apple's biggest growth driver may rely on the next generation iPhone, the iPhone 6 with its rumoured big screen, to finally go head to head with popular Android phones. The company is expected to release a 4.7-inch and a 5.5-inch version of the next iPhone in September.
To contact the editor, e-mail:
Most Popular Slideshows
- Prince William & Kate Middleton Caught Flirting In A Countryside Dinner Date [PHOTOS]
- Kate Middleton’s Mom Accused Of Being A Social Climber, Prince George Not Seen By Relatives
- Prince William & Kate Middleton Boards London Train in Casual Disguise, Royal Couple’s Incognito Plan A Huge Hit [PHOTOS]
- Angelina Jolie & Brad Pitt’s Top Secret Wedding Tramps Jennifer Aniston’s ‘Friends’ Reunion & Pregnancy Talks [PHOTOS]
Join the Conversation
- 5.5-Inch iPhone 6 is iPhone Air on Sept 19 Release Date: 5 Things to Consider Before Buying
- Pricey iPhone 6 on Release Date Likely but with 3X Retina Resolution & Mobile Payment Service – Reports
- Nexus 6 Release Date Update: Moto X+1 Look Leaked, Nexus X or Shamu Moved to Demo Phase
- Google Nexus 8 Confirmed as HTC T1 aka Volantis/Flounder with Freshly-Leaked Specs & Features – Reports
- Europe, US Next on ISIS’ Hit List, Says Saudi King; Seized ISIS Laptop Reveals Terrifying Bio-Warfare Plans
- iPhone 6 On Release Date To Feature Qualcomm MDM9625M LTE, 1GB RAM, Mobile Payment Deal With AMEX, 1334x750 Display
- HTC One M8 for Windows Vs. Nokia Lumia Icon, The Battle Of Windows Phones