After Apple stock splits 7-to-1, one of these 6 stocks could be next
Apple (AAPL) plans to split its stock seven-for-one after the market closes Friday, and the new price will be reflected in trading Monday. For investors, the price of each share will go from close to $650 to less than $100 a piece.
Related: Apple heading to new all-time highs and no one can stop it
The split was announced in April, and the company has indicated it is hoping a lower share price will make the stock more accessible to a larger number of investors. It doesn't, however, change the value of the company's shares or the value of investors' holdings one iota.
Nonetheless, USA Today market reporter Matt Krantz says some investors fixate on splits and on playing the game of trying to figure out what company could be next.
"People love this idea they’re getting more shares of a stock for nothing, even though the stock price is split by the exact same amount, so the value of their holdings is identical," he tells us in the video above. "I can’t tell you how many times people ask me 'what’s going to be the next stock to split?'"
Krantz says the focus is on stocks between $500 and $700 a share, because they’re the closest to the $700 mark where Apple finally decided its stock price was high enough to warrant a split (and therefore a logical threshold to expect others to think the same way).
Related: How Google overtook Apple to become the world's most valuable brand
He says after a pervasive "anti-stock split mentality," the "seal has been broken" on splits, and "you're going to see more and more of this."
Krantz has a list of six companies that could potentially split its stock shares. They are Kaplan test-prep company Graham Holdings (GHC), insurers Markel (MKL) and White Mountains Ins. (WTM), Google (GOOG), Chipotle Mexican (CMG) and AutoZone (AZO).
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