Apple Stock

Written by: Steve Bouchey, President & CEO

Thursday, April 24, marked a significant day for Apple stock shareholders.  For the first time in nine years, Apple Inc. (AAPL) will have a 7-for-1 split, a move that caused shares to spike in early trading.  While the split will not change the value of Apple’s shares (seven shares at $75 each as opposed to one at $525 a share), it could make the company’s stock more accessible to individual investors.   Shareholders as of June 2 will get six additional shares for each Apple stock they own, and the new split-adjusted trade will take place starting June 9th

Also reported in the earnings call, Apple expanded its buyback program to $90 billion from $60 billion because it continues to view its shares as undervalued.  The company posted earnings of $11.62 a share, on revenue of $45.6 billion, blowing past estimates for $10.18 a share on $43.53 billion in revenue, according to a consensus estimate from Thomson Reuters.  Apple did particularly well in China during the quarter where revenue rose 13% from a year earlier to $9.3 billion. China is Apple’s third-biggest market after the Americas and Europe.