Tags: jim cramer | apple | stock | split

Jim Cramer: Stock Split Proves Apple 'Cares About the Little Guy'

By    |   Friday, 31 July 2020 12:17 PM

CNBC’s Jim Cramer on Friday cheered Apple’s decision to split its stock, saying it benefits the retail investor.

The iPhone maker made the surprise announcement in its quarterly report, saying it will split its stock four-to-one when trading opens on Aug. 31, Apple's first share split since 2014.

“Tim told me last night, ‘Hey, I want more people in the stock,’” Cramer said on CNBC, referencing Apple CEO Tim Cook.  “The idea that he wants more people in his stock is refreshing,” the “Mad Money” host added.

Stock splits have become rare on Wall Street in recent years, with just three S&P 500 members announcing splits in 2020, compared to an average of 10 a year over the past decade, according to S&P Dow Jones Indices, Reuters explained.

Splitting their stocks is a way for companies to make it less expensive to buy individual shares, potentially attracting retail investors who make small trades.

“Apple cares about the little guy. Amazon is not focused on that. They’re focused on getting the goods to the little guy,” Cramer said.

“I think Apple is taking the right move,” Cramer said. “These other companies should do that too,” said Cramer, whose charitable trust owns shares of Apple and Amazon.

Apple’s Cook “doesn’t play to the hedge funds. He plays to the people who buy the product and have 99% satisfaction rating. That’s who he plays to,” Cramer said.

Amazon's (AMZN) shares cost $3,051 each, while an Alphabet share (GOOGL) sells for $1,538 and Chipotle Mexican Grill's shares (CMG) cost $1,148.

With Apple's (AAPL) stock surging more than 6% Friday to $408 following its strong quarterly report, the split means shareholders will receive three shares for every one that they own. Investors will be able to buy shares for closer to $102 each.

Apple said it hoped to make the shares "more accessible to a broader base of investors."

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CNBC’s Jim Cramer on Friday cheered Apple’s decision to split its stock, saying it benefits the retail investor.
jim cramer, apple, stock, split
Friday, 31 July 2020 12:17 PM
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