APPLE TOPS $500 A SHARE

Apple closed at more than $500 a share Monday as the company heads toward a four-for-one stock split next week.

With a market cap around $2.16t, making it the most valuable stock ever, the stock split process began today after the closing bell. Current investors will receive additional shares on Friday; the new, split-adjusted price starts 8/31. The stock closed at $503.43.

The split only increases the number of shares on offer and will not affect the value of any investor’s portfolio. The move opens the door for smaller, individual investors who shy away from the $500 price tag but will jump at a chance to own Apple stock in the $130 neighborhood.

The factor driving the stock price jump, though, is not only the split. It’s the 5G iPhone due this fall that is expected to get consumers to trade in older phones in droves.

Analysts believe the iPhone 12 is the biggest advancement under Tim Cook’s watch and the most significant product launch since iPhone 6 in 2014. Morgan Stanley analysts have noted that sustained services growth and a 5G iPhone cycle will drive double-digit revenue growth in fiscal 2021.

The improved technology is expected to also boost the offerings in Apple’s services unit such as Apple TV+ and Apple Music.