Apple’s 7-for-1 split went live today, and its share price dipped under the $100 mark, as the technology company greatly increased its share count.
The market is up today, but Apple has picked up more than twice the bounce that the NASDAQ has received, climbing north of 1 percent. It’s not a massive rally, but no one anticipated more. Apple’s split is noteworthy given its massive scale; the company is the most valuable public one in the world, with a market capitalization of around $565 billion. So, Apple’s 1 percent lift today is worth north of $5 billion.
Staggering figures aside, Apple’s share price is now a modest $93.70, making it a prime target for inclusion in the Dow Jones Industrial Average (DJIA), a price-weighted exchange. Previously, Apple’s share price made it all but impossible to include given the exchange’s weighting procedure. Call it the Berkshire problem, if you will.
If Apple was selected to be part of the DJIA, it could see its shares pick up momentum as funds tracking that index pick up its stock. That’s speculative, and merely potential of course.
Apple’s publicly stated reason for the split was to make its shares more accessible to a wider investment class.