An Apple for 100 Companies..

Whilst a lot of companies around the world are struggling or going out of business due to the Covid-19 pandemic, some are doing very well.

Apple is currently the world’s most valuable company and it’s share price has shot up during the pandemic. Like a lot of tech companies, Apple’s valuation has increased as it’s expected to do well in the post Covid-19 world where people are more reliant on tech as they work and shop remotely.

Apple’s valuation is pretty spectacular and at the time of writing the value of Apple is $2.3 trillion (or to write it in it’s full glory $2,300,000,000,000).

To put that into perspective, the valuation of Apple is now higher than the value of the 100 largest companies in the UK – the market value of the FTSE 100 (the 100 largest companies in the UK) is $2.1 trillion compared to Apple’s $2.3 trillion.

Apple’s shares also recently rose by 3.4% due to a four-for-one stock split.

As the name suggests, a stock split is where the shares are split into more shares. The underlying value of the company doesn’t change as it is merely dividing the shares into a larger number of shares.

For example, if you held 1 share before the split which was worth $8, after the split you would hold 4 shares which (in theory) would be worth $2 each so your total holding would still be valued at $8.

Each individual share in Apple though was trading at over $500 before the split and after the split the equivalent value of the new shares was up by 3.4%.

One of the reasons share prices can increase when there is a stock split is that the shares are now within the reach of a larger proportion of individual buyers.

Some individuals who may not have been able to afford to spend $500 on a share may instead be able to spend $125 on a share.

This “opening up” to a wider range of shareholders can cause the share price to increase.

Either way, I’m sure that shareholders of Apple are pretty pleased with the performance of the company.

Register to a free ACCA demo course
Register to a free CIMA demo course
Register to a free DipIFR demo course

Time up for Swiss watches?

Switzerland has a reputation for being the home of some of the most prestigious watch manufacturers. Omega, Tag Heuer and Breitling are just three if[..]

Ericsson fined $1 billion for bribery.

The Swedish telecommunications group Telefonaktiebolaget LM Ericsson (or Ericsson as most people refer to it as and how my spell checker prefers) is an incredibly[..]

Apple is bigger than these countries...

The latest quarterly results of Apple have just been released and they are pretty impressive. The tech giant’s revenue increased by 17% when compared to[..]

Watch your step...

You probably haven’t heard of Klaus Maertens but I reckon that most of you will have seen what he started. Klaus was a German soldier[..]

Subscribing To A Hot Seat

A lot of us are used to paying a monthly fee for a wide range of goods and services as customers. For example, we may[..]

Are these real Nikes?

Originally founded in 1964 as "Blue Ribbon Sports" by Bill Bowerman and Phil Knight the company officially became Nike Inc. 6 years later. Since then,[..]

EY to split into 2?

Interesting times for EY, the Big 4 accounting group. They have just reported record global revenues of $45.4 billion in the year to the end[..]