There is a question that is ranging in everyone’s mind; when will the next Apple Inc. (NASDAQ:AAPL) stock split come? Apart from its incredible success, Apple is currently one of the most world’s most valuable companies. Its stock went public in 1980 at $22 and to date; the tech giant has had its stock split four times. The company’s last stock split, which occurred two and a half years ago, was a 7-for-1 slice. Nonetheless, the present share price stands at $112.12, a higher amount than the roughly three-quarters of the stocks in the S&P 500.
But is it necessary that Apple splits its stock?
Apple’s split of its stock in June of 2014 may or may not have been on purpose, but the move changed the company’s stock’s pre-split all-time high from a few dollars above $700 to about $100. Apparently, the splitting of stocks is supposed to make shares easier to buy for individual investors. Any major investor will agree that the purchase of a stock represents the purchase of a fractional ownership interest. Nonetheless, a stock split does not in any way affect Apple shares’ intrinsic value. Sub-dividing the current unit of ownership changes nothing in regards to businesses their prospects and neither does it expose them to any risk.
According to Apple’s CEO Tim Cook, the company was splitting its shares to make them more accessible to everyone. He outlines, “We’re taking this action to make Apple stock more accessible to a larger number of investors.”
Is Apple expected to split its stock any further and when?
Following Apple’s recent split of its stock, there are clear indications that the company is willing to entertain a significantly higher stock price. This feeling is in line with today’s higher comfort level among enterprises in the S&P 500, which are experiencing three- or even four-digit stock prices.
Though it depends on how the shares perform in the future, there are speculations that Apple is likely to have another split soon; perhaps earlier than 15years. Nonetheless, investors are keen on this given that because without the splits they may have difficulties buying the shares.