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Apple's Stock Price Hits $100, the Highest Level Since September 2012

RaduTyrsina

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This year, Apple is expected to release a bigger-sized iPhone and a totally new product, which most likely could be the elusive iWatch. A recent report hinted that the iPhone 6 could get released in the beginning of next month, and its launch could be accompanied by the iWatch. That's perhaps the explanation to why Apple's stock has crossed the $100 mark.

After the 7-for-1 stock split that which was completed in June, the number of shares has increased, in order to make Apple’s stock more accessible to a wider audience. In other words, instead of paying $700 for a share, you can now buy one with just $100. And it seems that the stock price will increase even more, as we're nearing the potential release date. Here are some more details from the WSJ

For Apple bulls, the strategy has reaped immediate benefits. Shares have rallied by more than 30% since late April, when the company announced the split in conjunction with an upbeat quarterly report. The stock is now poised to take its record high achieved in September 2012. Back then, Apple hit a closing high of $702.10, which is the equivalent of $100.30 in today’s split-adjusted terms.

By diversifying its product lines, Apple is hoping to reignite earnings growth, which has flattened in recent quarters. The company generates billions of dollars in profit every quarter, but after a decade of stellar results its growth rate has slowed recently. After peaking in September 2012, the stock slid more than 40% before bottoming in April 2013. It continued to struggle through last summer, but the stock has been in a steady uptrend ever since.

Apple hit $100 a share during midday trading on Tuesday for the first time since its seven-for-one split in June. The stock followed a general upward trend after the milestone, putting shares above their split-adjusted record close of $100.3 set on September 19, 2012, just shy of the split-adjusted all-time high of $100.72 from September 21, 2012.

According to Morgan Stanley, a potential boost from the iWatch could see Apple's stock price rise to as much as $110. Apple's stock has turned out to be a real gold mine for the wise investors. A $10,000 investment in Apple 10 years ago would be worth $456,347.03 today.

Source: WSJ
 

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