Jim Cramer's Opinion on Apple Stock 4-1 Split
CNBC 's Jim Cramer praised Apple's decision to split its stock, according to CNBC.
“I think Apple is taking the right move. Tim told me last night, ‘Hey, I want more people in the stock,’” Cramer said. “These other companies should do that too.” On Thursday, Apple announced an 11 percent sales increase and a 4-1 stock split on August 24. Apple closed around $425 on Friday, meaning that shares after the split would sell for around $106. Shares will start trading on a split-adjusted basis on August 31.
A stock split has no effect on a company's fundamentals but allows more investors to get a piece of the pie. This allows retail investors who don't want to put $400 into one share an opportunity to get in at a lower price. “The idea that he wants more people in his stock is refreshing,” Cramer said referencing Tim Cook. “He 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.”
“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.