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Apple 4-1 split: Why you should invest

BY: Telha Chohan

Tech giant Apple has once again announced a stock split for the 5th time in its company history. The announcement came during the 3rd quarter earnings report where they performed exceptionally well reporting $59.7 billion in revenue, which is an increase of 11% from last year even with an ongoing pandemic. This new evaluation makes it the highest they have ever gained in this quarter. 

The split comes after the stock has been gaining capital rapidly since its drop to $224.37 back in mid-march when investors were panicking and started to sell. 

So what exactly is a stock split?

This is when a company decides that they want to increase the quantity of shares that are being publicly traded. In this case, it's a 4-1 split so investors will gain an additional three shares for every share they already own, however, the price of each share will be divided by 4 on August 31st. Companies like Apple do this as a strategic play to increase the demand of the stock by expanding the type of investors that can invest in the company. 

Since Apple's announcement on July 30th, in a matter of 2 weeks the stock has gone up almost $80 which was expected due to the company's quarterly earnings with addition to the stock split. 

Should I invest in Apple? 

The answer is simply a yes, reason being that Apple is considered a blue-chip stock which means that it’s a rather safe stock to bet your money on in the long run, and with the stock split you would be able to buy more shares within the company which increases your overall revenue from said stock. 

The future of Apple is looking bright as it is right around the corner of becoming the first company to reach a 2 trillion dollar evaluation, which would further increase the demand for the stock. 

The younger generation is always told to invest and invest and invest which can get tiring to listen to sometimes, however, it will be one of the most important things that you can do as a young adult. When you invest you not only start preparing for your future, you also gain experience and knowledge that you can apply to other aspects of life. Investing teaches you the importance of savings, responsibility, critical thinking. Now is your time to make mistakes and learn from them, not when you are older and can’t afford to make mistakes because you have people that are dependent on you. Apple is one of the safest stocks that you can buy and afford, even if it's only a few stocks that you own.


*All arguments made and viewpoints expressed within Youth In Politics and its nominal entities do not necessarily reflect the views of the writers or the organization as a whole.


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