Apple Stock Jumps on Rumors of Stock Split at Tomorrow's Shareholder Meeting

Hedge fund manager Doug Kass tweeted (via 9to5Mac) a short time ago that he is hearing rumors of an announcement regarding a stock split coming at Apple's shareholder meeting scheduled for tomorrow at the company's headquarters in Cupertino, California. The stock has reversed course since Kass's Tweet, moving from down $5 to up $5.

Many observers, such as Fortune's Philip Elmer-Dewitt, are calling into question Kass's statements, noting the sequence of events that saw him announce a large position in Apple, float the rumor of a stock split, and then announce that he was selling off shares after the stock spiked. Kass has, however, defended his Tweet, saying that the rumors were "all over the Street".

aapl_split_rumor
While a stock split would not add any intrinsic value to Apple's market value, some have viewed a potential split as a positive for Apple under the perception that a company is more likely to split when it is confident that the stock price will rise in the future. Observers have also argued that high stock prices for companies like Apple and Google have kept them from being added to the Dow Jones Industrial Average given the outsized impact they would have on the price-weighted index.

Apple's last stock split came in February 2005, a 2-for-1 move that brought the price of a single share down to just under $45. Apple has refrained from splitting its stock since that time, with investors seeing the share price rise to over $700 before pulling back to the current level around $450.

Top Rated Comments

deadwalrus Avatar
144 months ago
If they split it I'm buying it.

In that case I'll sell you 4 quarters for a dollar. All day long. LET'S DO THIS.
Score: 12 Votes (Like | Disagree)
d0mth0ma5 Avatar
144 months ago
How is that not stock price manipulation?
Score: 11 Votes (Like | Disagree)
DipDog3 Avatar
144 months ago
1. Buy a lot of AAPL shares at a low price.
2. Tweet about a stock split rumor.
3. AAPL's price goes up.
4. Sell shares & PROFIT!!!!

Why didn't I think of that???
Score: 7 Votes (Like | Disagree)
Avatar74 Avatar
144 months ago
Some people can't afford $450-$700 a share as an investment.
What does that mean, exactly?

Are they not able to buy half the shares at 500 that they would buy at 250 and encounter basically the same result? Does mathematics and physics work differently on their planet?

-or-

Do they not have so much as $500 to their name, in which case they probably shouldn't be trading securities at all.

Proper portfolio allocation and sector diversification isn't really achieved if you have less than $100,000 in funds to invest. If you are in that situation, you're better off participating in an index fund and sitting on it, not just because of risk mitigation (fractionalizing your investment across hundreds of stocks to reduce risk exposure), but also because index fund managers have almost no expense and most indexes tend to consistently outperform the handful of securities that amateurs might be likely to pick. Why play with individual securities if you can sit on an index fund and earn a better return over time?

You're not better off if Apple decides to dilute its per share value because that has no effect on the earnings results of the company.... Buying 20 shares of Apple at $250 is of no additional benefit to you than buying 10 shares of Apple at $500...
Score: 5 Votes (Like | Disagree)
Peace Avatar
144 months ago
If they split it I'm buying it.
Score: 5 Votes (Like | Disagree)
somethingelsefl Avatar
144 months ago
An Apple split? I thought it was a banana split.

I'll be here all week, folks.
Score: 4 Votes (Like | Disagree)

Popular Stories

iPhone 16 Camera Lozenge 2 Perspective Gray

Five Key Upgrades Coming to iPhone 16

Friday March 15, 2024 1:45 pm PDT by
The iPhone is Apple's top-selling product, and it gets an update every year. In 2024, we're expecting the iPhone 16 and iPhone 16 Pro lineup, with an arguably more interesting feature set than we got with the iPhone 15 and iPhone 15 Pro. Subscribe to the MacRumors YouTube channel for more videos. Capture Button All four iPhone 16 models are set to get a whole new button, which will be...
When To Expect New iPads Feature 1

Apple to Announce New iPads on March 26, Rumors Claim

Monday March 18, 2024 4:02 am PDT by
Apple is widely expected to release new iPad Air and OLED iPad Pro models in the next few weeks. According to new rumors coming out of Asia, the company will announce its new iPads on Tuesday, March 26. Chinese leaker Instant Digital on Weibo this morning 日发布%23">claimed that the date will see some sort of announcement from Apple related to new iPads, but stopped short of calling it an...
airpods 3 orange

Two New AirPods 4 Models Expected to Launch in September or October

Sunday March 17, 2024 7:56 am PDT by
Apple suppliers will begin production of two new fourth-generation AirPods models in May, according to Bloomberg's Mark Gurman. Based on this production timeframe, he expects the headphones to be released in September or October. Gurman expects both fourth-generation AirPods models to feature a new design with better fit, improved sound quality, and an updated charging case with a USB-C...
iphone se 4 modified flag edges

iPhone SE 4 Expected to Depreciate Heavily

Tuesday March 12, 2024 9:04 am PDT by
Resale value trends suggest the iPhone SE 4 may not hold its value as well as Apple's flagship models, according to SellCell. According to the report, Apple's iPhone SE models have historically depreciated much more rapidly than the company's more premium offerings. The third-generation iPhone SE, which launched in March 2022, experienced a significant drop in resale value, losing 42.6%...
M3 iPad Feature 3

New iPads Likely to Begin Shipping in April

Monday March 18, 2024 9:52 am PDT by
Apple's new iPad Pro models with OLED displays will likely begin shipping to customers in April, according to information shared today by Ross Young, CEO of display industry research firm Display Supply Chain Consultants. Bloomberg's Mark Gurman also said the new iPad Pro models might not ship until "deeper" into April in his Power On newsletter on Sunday:I've repeatedly said that new...
General iOS 17 Feature Orange Purple

iOS 17.4.1 Update for iPhone is Imminent

Monday March 18, 2024 5:27 am PDT by
iOS 17.4.1 and iPadOS 17.4.1 should be released within the next few days, with a build number of 21E235, according to a source with a proven track record. MacRumors previously reported that Apple was internally testing iOS 17.4.1. As a minor update for the iPhone, it will likely address software bugs and/or security vulnerabilities. It is unclear if the update will include any other changes. ...
Reasons to Not Upgrade to macOS Sonoma 14

macOS Sonoma 14.4: Reasons Not to Update

Monday March 18, 2024 9:36 am PDT by
Since Apple unveiled macOS Sonoma 14.4 on March 7, the transition to the latest software update has not been entirely smooth for everyone, and a number of issues have been reported by users that significantly impact their daily workflow. This article lists the most prominent challenges users have faced since updating to macOS Sonoma 14.4, and offers potential solutions where available. USB...