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Apple Share Price Zooms Past $500 Ahead of Stock Split

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Apple’s stock price has surged past $500 on Monday, just days before the stock split. The stock traded at $370 per share only a month ago on July 24. Just like many other technology stocks, Apple has been on a wild ride this year. The stock tumbled to $225 on March 23 as the world went into lockdown. But it has more than doubled since then.

Apple stock price at $500: A new all-time high

Apple has become the world’s most valuable company with a market capitalization of $2.15 trillion. On Monday, August 24, the stock opened at $501.74 per share. During its third-quarter earnings call, Apple had announced a four-for-one stock split, which is set to take effect on August 31. The stock split will make it easier for retail investors – especially those with small amounts of money – to buy Apple shares.

Apple’s shares have rallied approximately 70% since the beginning of this year. The stock plunged to $225 in March amid concerns that the pandemic and the lockdown would hurt its sales. But the Cupertino company exceeded all expectations for the April-June quarter.

The tech giant reported revenue of $59.7 billion for the June quarter, despite the pandemic. The revenue went up 11% compared to the same quarter last year. Most analysts were expecting a decline in revenue. The Wall Street consensus revenue estimate was only $51.47 billion. Its profits rose 25.9% YoY to $2.58 per share, beating the Wall Street expectations.

Morgan Stanley analyst Katy Huberty has anĀ Overweight rating on the stock with $520 target price (before split).

Apple’s board of directors said the proposed stock split would “make the stock more accessible to a broader base of investors.” The Cupertino company had last announced a stock split in 2014. Billionaire Warren Buffett had invested $35 billion in Apple stock in 2016. His Apple holdings have since swelled to $126 billion. Buffett hasn’t sold his Apple shares.

iPhone 12 release delayed

According to Reuters, Apple’s market value is higher than the combined market cap of the 200 smallest companies in the S&P 500 index. Apple is the biggest constituent in the S&P 500 with around 7% weightage. It has an even greater weightage in the Nasdaq 100 index.

However, the Cupertino company is set to suffer a minor setback in the current quarter. During the June quarter earnings call, Apple told investors that the iPhone 12 release date would be delayed by a few weeks due to the COVID-19 pandemic. The tech giant typically launches new iPhones in September, but the iPhone 12 is unlikely to debut until October.

About the author

Vikas Shukla

Vikas is Insider Paper's Editor/Writer. He has been covering the latest developments in Tech and Politics for about a decade. He loves trekking, playing chess, and reading. - Email: [email protected]

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