Apple’s share price rose 3.49% to $455.61 on Thursday, and its market value rose to $1.95 trillion, just one step away from the $2 trillion market value. Earlier, TD Ameritrade said Apple’s split plan and strong earnings were attracting more retail investors to buy the company’s shares. Rbccapital markets strategists also said signals from the options market indicate that Apple’s shares are in hot demand.
on July 30, Apple announced that its board of directors had approved a 1:4 stock split plan, which was intended to make the company “easier to attract a wider range of investors.”.
since August last year, Apple’s market value has more than doubled. At present, Apple’s weight in the standard & Poor’s 500 index has exceeded that of IBM in 1985, becoming the most weighted component stock in 40 years. Apple’s market value has risen by about $570 billion so far this year, ranking fifth in the S & P 500 index.
but some analysts began to question whether the growth of Apple’s share price can be sustained. Bank of America has previously removed apple from its U.S. first choice list and downgraded the company’s stock rating from buy to neutral.
analysts believe that Apple’s upcoming 5gi phone has risks. If the average price is too high, it may bring pressure on the gross profit margin and unit sales. In addition, content amortisation costs may compress service margins.