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:
Join the Conversation
- Target’s ‘Surprise Doorbusters’ Black Friday 2014 Deals On TV Sets, Entertainment Centres, DVD Players And More
- IKEA Black Friday 2014 Ad Includes Discounts On Home Furnishings, Appliances, Kitchen Designs, Beds, Sofas, Mattresses And Toys
- Walmart Canada Black Friday 2014 Ad For Nov. 28, 2014 Up To Dec. 1, 2014 Includes Savings On The iPad Mini 16GB And The Beats Solo HD Drenched Headphones
- Lowe's Black Friday 2014 Deals Include Up To 40% Off On Select Major Appliances, Plus Free Shipping For Orders Of $19 Or More
- Sears Outlet Black Friday 2014 Sale Includes Up To 60% Off On All Refrigerators And Up To 50% Off On All Washers And Dryers
- 5 Proofs Russia is Geared-Up for Shooting War with U.S. and Can Win Future Nuclear Showdown
- T-Mobile’s Black Friday 2014 Deals On Apple iPhone 6, Samsung Galaxy Note 4/Edge, Nexus 6, HTC One M8, LG G3, iPad Air 2 And Mini 3
- ISIS Drug Transit From Afghanistan To Europe Confirmed By Russia: Money Goes Into Terror Funding And In New Recruitments
- Bill Clinton At It Again, Caught By Camera In Jerusalem Peeking At Woman’s Breast
- Revealed: Vladimir Putin Plotting To Invade Europe – Report