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Will Apple Stock Split in 2024?
No, CEO Tim Cook and the Board of Directors at Apple have made no official decision regarding an Apple stock split in 2024.
However, stock splits usually happen when the stock price is high, and at AAPL’s current price of $222 as of September 12, 2024, many would argue Apple’s stock split might be around the corner.
Moreover, Apple’s stock price reached an all-time high of 234.55 on July 16, 2024. Is this a compelling reason for the company’s management to think of the next stock split?
A lower price tag for the shares could make Apple stock much more accessible, or is it still not high enough? Let’s see what we know so far.
Key Takeaways
- Apple’s Board of Directors have made no official announcement about a stock split.
- Apple stock split rumors persist owing to the high price of AAPL and huge interest in one of the world’s top three largest companies by market cap.
- Before Apple’s last 4-for-1 split on August 31, 2020, the stock was around $499 per share, and afterward, it adjusted to approximately $127 per share.
- Apple has split its stock five times: a 4-for-1 split in 2020, a 7-for-1 split in 2014, a 2-for-1 split in 2005, another 2-for-1 split in 2000, and the first 2-for-1 split in 1987.
Why Doesn’t Apple Split Its Stock?
The release of the iPhone 16 in September 2024 presumably consumed most of the company’s energy and focus.
In the remaining three months of the year, perhaps Apple management will decide to take another look at the AAPL share price.
But they probably won’t.
Focus on AI
Even with the latest iPhone launched, product development never stops. This is especially true in the new AI era.
Should Apple get its AI strategy right, the stock could be open to considerable upside from current levels, stock split or not.
On the flipside, as was initially the case in the first few months following the launch of ChatGPT, investors could, if Apple don’t play it right, see the company as falling behind the likes of Microsoft (MSFT).
It seems likely that Tim Cook would see a stock split as a distraction from the company’s important new mission of becoming a leader in AI development and deployment.
Buybacks
Probably the most obvious reason to avoid a plot is Apple’s recent preference for share buybacks, another form of ‘financial engineering.’
Apple has been focused on buying back its own shares to return value to shareholders. They might prefer to continue this approach rather than splitting the stock, which could spread the value across more shares.
Economic Uncertainty
Given the current economic and political uncertainties, Apple might choose to be cautious and avoid making changes like a stock split until after a new President has been chosen and perhaps when the outlook for inflation and the US economy is better understood.
Aside from company-specific issues, there are a number of reasons splitting the stock has become less popular in some investing circles.
What Does This Mean for Investors?
Naturally, if no Apple stock split date for this year materializes then there will be no effect on investors, besides perhaps a little disappointment.
Should the Apple stock split 2024 edition actually happen, here are some possible scenarios, assuming the current share price of around $200.
What Happens: For each share you hold, you get another one. So, if you had 10 shares before, now you’d have 20.
Stock Price: The price per share would drop by half. If it was $200 before, now it would be $100.
What Happens: You get 2 more shares for every 1 you own. So, 10 shares turn into 30.
Stock Price: The price of each share would be split into thirds. A $200 share would become $66.6.
What Happens: For every 1 share, you get 3 more. So, 10 shares becomes 40.
Stock Price: Each share’s price would be cut into quarters. A $200 share price would drop to $50.
Apple Stock Split History
Apple’s Last Stock Split
Apple’s stock has been split five times in its storied history as a public company, with the last one not that long ago.
- Apple’s last stock split was its first 4-for-1 split on August 28, 2020.
- The Apple stock price before the split (i.e., the closing price on August 28, 2020, the last trading day before the split) was approximately $499.23.
- The Apple stock price after the split (i.e., on August 31, 2020, after the split took effect) was the opening price adjusted to around $127.58 per share.
How Many Times Has Apple Stock Split?
The Apple stock split history involves just five splits in nearly 40 years since the company’s IPO.
For example, Tesla has had two stock splits since going public 14 years ago in 2010, while Microsoft has had nine stock splits since 1987.
Will Apple Ever Split Its Stock Again?
Yes, the iPhone-maker has historically used stock splits, including under the current stewardship of CEO Tim Cook so it seems likely the company will split its stock again.
There’s been hardly any public discussion at all about the possibility of an Apple stock split. Company executives are unable to comment until an official announcement is made, and most analysts choose not to make an Apple stock split prediction, given that it’s a yes-or-no situation and they lack insider information.
Top 5 Tech Stocks With Frequent Stock Splits
Several well-known technology companies have executed stock splits. Here are five notable examples:
The tech giant implemented a 20-for-1 stock split in July 2022, marking one of the most significant in its history.
Microsoft has had multiple splits, with the most recent being a 2-for-1 split in February 2003.
In June 2022, Amazon carried out a 20-for-1 stock split, its first since 1999.
Tesla conducted a 3-for-1 stock split in August 2022, following its 5-for-1 split in 2020.
The streaming giant completed a 7-for-1 stock split in July 2015, marking its first split since going public.
What Is a Stock Split?
A stock split is a corporate move where a company increases its number of outstanding shares, often to boost liquidity.
In a forward split, the price per share decreases, but the company’s overall market value doesn’t change. The alternative to a forward split is a reverse stock split, which essentially does the opposite as far as share price and number of shares.
For example, in a 2-for-1 stock split, if an investor has 50 shares at $200 each, after the split, they would own 100 shares at $100 each, with the total investment value still at $10,000.
Why Are They Important to Investors?
A stock split is a symbolic act by a company to alter the share price and the number of shares outstanding to send a message to investors and potentially encourage a wider ownership base.
A stock split can boost a company’s value in the short term, which, of course, would benefit existing shareholders. However, ultimately, it has no fundamental effect and is only a form of financial engineering.
The Bottom Line
Apple has not made an official announcement with regards to any plans for a stock split but it always remains a distinct possibility while the AAPL share price is trading up at high levels.
Keep in mind that while your share count goes up and the price per share goes down, the overall value of your investment stays the same right after the split.
It’s like slicing a cake into more pieces—you have more slices, but it’s still the same delicious cake.
FAQs
Is Apple doing a stock split in 2024?
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References
- FAQ – Apple (Investor Apple)
