Apple announces 7-for-1 stock split, buybacks bumped to $90 billion

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  • Reply 21 of 188

    when your stock splits, pretty much nothing happens... your broker just multiplies your holding by 7 at the magic hour, and the price goes to 1/7th (and all the math on dividends, p/e, market cap... they all wash out).

     

    This is definitely driving the liquidity of the stocks and driving the stock back into the consumer market.   Them buying up stock (which on the one hand concentrated the stocks into the buy and hold group, and arguably made employees a higher percentage of ownership), and then issuing a 7:1 split...    To me, the only thing this seems to do is make options plays 7X easier. (given that you have to do options at 100 share units, now you can make the play with effectively 14.3 shares)

     

    Or is this part of Oppenheimer's grand plan on his exit?   Get down from a hair less than Biilion shares down to 850Million shares, and then go to 6Billion shares.  Those with the most shares wins?

  • Reply 22 of 188
    jakebjakeb Posts: 562member
    Oh hells yes.

    I know stock splits are technically meaningless, but AAPL has been weighed down by completely meaningless negative sentiment. A psychological reset like this might just get things moving up to a reasonable valuation.
  • Reply 23 of 188
    brlawyerbrlawyer Posts: 828member

    Google is DEAD. And so is Microshaft.

  • Reply 24 of 188
    apple ][apple ][ Posts: 9,233member
    Quote:
    Originally Posted by Freshmaker View Post

     

    It will make it more "affordable" to buy Apple stock, and could drive up the price more as smaller investors buy in.  


    I hear that argument a lot, but I'm not sure if I agree with it.

     

    If somebody couldn't afford $500 a share, then some small investor buying a few shares for $80 won't make much difference in my opinion. It's the big players that count. The small investor doesn't mean crap. 

  • Reply 25 of 188
    I do _NOT_ pity the poor fools who shorted APPL today before the news. "They" are all the usual whining market manipulators who try to tank the stock every quarter because they are unhappy that APPL only sold 50 million iPhones, when of course Apple should have sold 60 million according to their Wall Street Guesstimates. Let them eat their APPL 'shorts' today!
  • Reply 26 of 188
    jungmarkjungmark Posts: 6,926member
    I like the split. It always felt odd trying to sell 14 shares. Now I can sell 100.
  • Reply 27 of 188
    quinneyquinney Posts: 2,528member
    freshmaker wrote: »
    Would someone mind explaining to me what a 7-1 stock split is? What happens when you split stock? Or perhaps just point me go a useful area of the interwebs that can better explain it for me. Thanks.
    Essentially you're getting 7x the shares of stock that are valued at 1/7th the per-share price.  So, hypothetically, instead of having 1 share of stock that's priced at $700, you'd have 7 shares that are priced at $100.

    Generally speaking, this is a good thing.  It will make it more "affordable" to buy Apple stock, and could drive up the price more as smaller investors buy in.  As an example based on AAPL's closing price today of $524.75, the after-split price would be $74.96.  That will no doubt change a lot before June, however.

    People who could not afford $524.75 shares could drive up the price by buying $74.96 shares, or their impact could be insignificant.
    According to Yahoo finance, institutional ownership of AAPL is 62% today. Let's see how that changes after the split.
  • Reply 28 of 188
    phone-ui-guyphone-ui-guy Posts: 1,019member
    Quote:

    Originally Posted by island hermit View Post

     

    7 for 1?

     

    Later it says 6 for 1.

     

    More than likely 7 for 1.


     

    It says you will get six more shares. The AI article just isn't as clear as it could be. So after the split you have seven since you had 1 and got 6. So it is 7 to 1. 

  • Reply 29 of 188

    The higher the stock value the less crazy fluctuations in the price. I thought that's why Google and Apple did not like splitting.

  • Reply 30 of 188
    Quote:

    Originally Posted by Phone-UI-Guy View Post

     

     

    It says you will get six more shares. The AI article just isn't as clear as it could be. So after the split you have seven since you had 1 and got 6. So it is 7 to 1. 


     

    "... announced a split granting each AAPL stock owner six shares for each share owned..."

     

    Not clear? No. Just wrong.

  • Reply 31 of 188
    phone-ui-guyphone-ui-guy Posts: 1,019member
    Quote:
    Originally Posted by island hermit View Post

    Quote:

    Originally Posted by Phone-UI-Guy View Post

     

     

    It says you will get six more shares. The AI article just isn't as clear as it could be. So after the split you have seven since you had 1 and got 6. So it is 7 to 1. 


     

    "... announced a split granting each AAPL stock owner six shares for each share owned..."

     

    Not clear? No. Just wrong.

     

    It doesn't say you loose the one you had. :)
  • Reply 32 of 188
    drblankdrblank Posts: 3,385member
    That's one way to handle Wall Street. I'm sure the stock brokers are saying BUY! BUY! BUY!
  • Reply 33 of 188
    quinneyquinney Posts: 2,528member
     

    It says you will get six more shares. The AI article just isn't as clear as it could be. So after the split you have seven since you had 1 and got 6. So it is 7 to 1. 

    "... announced a split granting each AAPL stock owner six shares for each share owned..."

    Not clear? No. Just wrong.

    Clear and correct. How do you think splits are executed, if not by granting more shares to current owners?
  • Reply 34 of 188
    Quote:
    Originally Posted by Phone-UI-Guy View Post

     
    Quote:
    Originally Posted by island hermit View Post

     
    Quote:

     
    Originally Posted by Phone-UI-Guy View Post



     

     

     

    It says you will get six more shares. The AI article just isn't as clear as it could be. So after the split you have seven since you had 1 and got 6. So it is 7 to 1. 



     

     

     

    "... announced a split granting each AAPL stock owner six shares for each share owned..."

     

     

     

    Not clear? No. Just wrong.


     




    It doesn't say you loose the one you had. image

     

    It doesn't say you have to give up your shares either in the headline... that makes it 8 for 1.

  • Reply 35 of 188
    A 7 for 1 stock split can be illustrated thusly:

    If you own 10 shares at the current stock price of $700 per share ($7,000 valuation), you will end up with 70 shares at $100 per share ($7,000 valuation). This is 7 times the number of shares for one seventh the price per share.

    This is an "additional" 6 shares per share owned.
  • Reply 36 of 188
    sirlance99sirlance99 Posts: 1,293member
    Quote:

    Originally Posted by brlawyer View Post

     

    Google is DEAD. And so is Microshaft.


    Um....NO.....they are not. All 3 companies will continue to exist and make money. 

  • Reply 37 of 188
    monstrositymonstrosity Posts: 2,234member
    Quote:
    Originally Posted by josephwinters View Post



    Would someone mind explaining to me what a 7-1 stock split is? What happens when you split stock? Or perhaps just point me go a useful area of the interwebs that can better explain it for me. Thanks.

     

    Nothing happens particularly interesting. You get 7 times your shares at 1/7th of the price... so back to where you started.

     

    Arguably pointless. Some people think it makes the shares more affordable, but in reality the number of people who buy single shares is a small fraction of the market.

  • Reply 38 of 188
    Quote:
    Originally Posted by quinney View Post





    Clear and correct. How do you think splits are executed, if not by granting more shares to current owners?

     

    First of all, you have to actually read my comment. Then proceed from there.

     

    The headline says:  "Apple announces 7-for-1 stock split..."

     

    The article says: "granting each AAPL stock owner six shares for each share owned..."

     

    That is neither clear nor correct.

     

    It should say:  "granting each AAPL stock owner an additional six shares for each share owned..."

     

    There. Clear and correct.

  • Reply 39 of 188
    mdriftmeyermdriftmeyer Posts: 7,503member
    Quote:

    Originally Posted by brlawyer View Post

     

    Google is DEAD. And so is Microshaft.


     

    That's the part people aren't seeing, but will sooner, rather than later.

     

    Apple just cut the nut sack of large traders manipulating the stock by opening it up to become a rising stock once again, for small investors. The flexibility Apple will have against Google's overpriced stock and Microsoft's overly split stock to a point of being a dividend only buy will become more apparent with future acquisitions and potential new markets Apple jumps head long into with new products.

  • Reply 40 of 188
    mpantonempantone Posts: 2,033member
    Quote:
    Originally Posted by shurenuff View Post

     

    How are the dividends per share affected by this?  Are they now divided by 7 once the stock splits or are the still going to pay out the $3 something per share after the split?


    The dividend payout is mid-May. The stock split is in early June. The $3.29 share dividend will have already been dispersed to shareholders. If you don't have shares of AAPL at the end of day on May 12th, you don't get the upcoming dividend payout.

     

    The next time Apple announces quarterly results, they'll say what the dividend will be. Assuming they stick with the same rate (2.5%), the new quarterly dividend would be about one-seventh of the upcoming payout. Let's say post-split AAPL is trading at $80 in mid-June; the new quarterly dividend payout would likely be around $0.50 per share.

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