Stock split masks Apple’s risk

Article Excerpt

APPLE INC. $506 is a hold. The company (Nasdaq symbol AAPL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 4.3 billion; Market cap: $2.2 trillion; Price-to-sales ratio: 7.9; Dividend yield: 0.7%; TSINetwork Rating: Average; www.apple.com) gets 50% of its revenue from iPhone sales. The remaining 50% comes from sales of its Mac computers, iPad tablets and other products. The company plans to split its outstanding shares on a 4-for-1 basis on August 31, 2020. The stock has shot up 146% in the past year, and the split will improve liquidity and help attract more investors. However, Apple’s high reliance on a single product—the iPhone—adds risk. As well, its new video-streaming service, Apple TV+, faces strong competition from Netflix and Disney. Apple is a hold. hold…

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