The iPhone maker made the surprise announcement in its quarterly report, saying it will split its stock four-to-one when trading opens on Aug. 31, Apple’s first share split since 2014. Stock splits have become rare on Wall Street in recent years, with just three S&P 500 members announcing splits in 2020, compared to an average of 10 a year over the past decade, according to S&P Dow Jones Indices.
Splitting their stocks is a way for companies to make it less expensive to buy individual shares. Amazon’s shares cost $3,051 each, while an Alphabet share sells for $1,538. With Apple’s stock surging 6% in extended trade to $408 following its strong quarterly report, the split means shareholders will receive three shares for every one that they own. Investors will be able to buy shares for closer to $100 each.