Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Apple Vs. Amazon Stock Splits: Win Or Die Trying

Published 07/25/2017, 06:01 AM
Updated 05/14/2017, 06:45 AM

Apple Inc (NASDAQ:AAPL) is in an epic drag race with Amazon.com Inc (NASDAQ:AMZN).

It’s a race of historical significance, too.

At stake is the title of “first trillion-dollar company in world history.”

As it stands right now…

Apple is winning by a score of $788 billion to $494 billion.

The $304-billion differential could be the result of Apple’s 7-for-1 stock split three years ago.

Let me explain…

Apple’s stock has split four times since the company went public:

  • The stock split on a 2-for-1 basis on June 16, 1987.
  • The stock split on a 2-for-1 basis on June 21, 2000.
  • The stock split on a 2-for-1 basis on Feb. 28, 2005.
  • The stock split on a 7-for-1 basis on June 9, 2014.

Yet Amazon’s stock has split only three times since going public:

  • The stock split on a 2-for1 basis on June 2, 1998.
  • The stock split on a 3-for-1 basis on Jan. 5, 1999.
  • The stock split on a 2-for-1 basis on Sept. 2, 1999.

By virtue of its ambitious 7-for-1 split three years ago, Apple strategically made its shares much more attractive to investors. (The perception of being cheap has a psychological impact on investors.)

Now it’s Amazon’s move.

With shares running north of $1,000, will Amazon steal a page from Apple’s playbook and announce a similarly aggressive split? And if so, should you front-run the announcement?

The timing for a major split to happen feels perfect.

Original post

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.