Apple announced on Wednesday, July 29, that on August 24, the company will execute a 4-for-1 stock split, making its stock more affordable for investors and enabling shares to be more liquid to be bought and sold at lower prices.
Every investor will receive four shares for every one share they own, making each share equal to one-fourth of the value of the former share.
This is the fifth time Apple has done a stock split since going public 1980 at $22.00 per share.
In 1987, 2000 and 2005, the tech giant split its stock on a 2-for-1 basis and then did a 7-for-1 split in 2014.
The announcement comes during Apple’s third-quarter fiscal report. The company reported that its fiscal third-quarter revenue rose 11 percent year over year and its earnings per share climbed 18 percent.
"Our June quarter was a testament to Apple's ability to innovate and execute during challenging times," said Apple CFO Luca Maestri in the company's fiscal third-quarter earnings call on Wednesday. "Our results speak to the resilience of our business and the relevance of our products and services in our customers' lives."
On Friday, Apple's stock jumped $40.28, or 10.5 percent, to $425.04.
However, analysts are saying that the split should not be a factor in why investors should invest in Apple due to the unpredictability of the market and the current destabilization created by the pandemic.
The reason why they think that Apple is the stock to buy is because of its resilience throughout the years, especially during difficult times and economic crises. And its recent fiscal third-quarter results further prove their point.