Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. Factset: FactSet Research Systems Inc.2019. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. So that's why you need to pay extra attention to how its stock is doing - even if you don't own it. It's hard to imagine Apple being left out of the Dow for much longer. There are already 11 companies in the Dow with triple-digit stock prices. That is no longer an issue now that the stock is trading under $100. And at $650 a share, Apple would have too much of an impact on the Dow's daily moves. But it's not currently in the Dow mainly because the Dow is weighted by stock price. Apple's annual sales are higher than all of them as well. The split may also help convince the people who run the Dow Jones Industrial Average, the most well-known barometer of the stock market in the world, to finally include the company among its exclusive group of 30 stocks.Īpple is worth significantly more than the other tech companies in the Dow: Microsoft ( MSFT), Cisco ( CSCO), IBM ( IBM) and Intel ( INTC). Related: Apple buying Beats for $3 billion So will you be more interested in buying Apple's shares once they begin trading for less than $100? Please tell us.Īnd even if you wouldn't ever consider buying Apple, there's another reason why Apple's stock price may matter to you. And some think Apple has helped regain its coolness factor by purchasing Beats Electronics, the headphone maker and streaming music service that rap star Dr. The company is likely to introduce its latest iPhone in August. There is also optimism about Apple's newly unveiled iOS 8 mobile operating system for iPhones and iPads. That makes it a better bargain than the broader stock market. The stock trades at just 13 times earnings estimates for Apple's next fiscal year. They also help to boost earnings per share by lowering the number of shares a bit.Īnd Apple is a cheap stock by the measure that matters most to investing pros. Stock buybacks are typically cheered by Wall Street because they are a sign a company believes its own stock is a good value. The company is now using a big chunk of its nearly $160 billion in cash to pay dividends to shareholders and buy back stock. So the all-time high adjusted for the split will be closer to $100.Īpple's stock has rallied for several reasons. Shares have roared back to life this year and are now just 8% below the all-time high they set in September 2012. Will you buy Apple once the stock price is lower? Let us knowĪnd the move comes at an interesting time for Apple. And Priceline's ( PCLN) stock is trading for nearly $1,250.Įven though the company's stock isn't really be any "cheaper" based on the way Wall Street experts value stocks, the stock will undoubtedly be more affordable. Chipotle ( CMG) shares trade for more than $560, for example. So why is Apple doing this? Companies with stock prices above $100 often decide to split their stock to try and lure more individual investors.ĭepending on how shares of Apple perform following the split, other companies with stock prices in the stratosphere might also want to consider a split. The value of your investment - and the market value of Apple - stays the same. You just have more stock at a lower price. It's important to note that if you already owned Apple, nothing really changed.