No, Apple is not down 85 percent this morning, despite what your stock portfolio website says.
The iPhone maker is poised to open at roughly $92.22 a share after executing a 7/1 stock split off Friday’s closing price of $645.57.
Before the split, the all-time high for Apple’s stock stood at $705.07. That peak has now been revised to $100.72.
The stock split is used to help renew investor interest in Apple, already the world’s most valuable company.
The reason has more to do with psychology than logic. Splits lower a stock’s trading price by substantially increasing the number of outstanding shares. Even though the company’s market value remains the same, the prospect of a lower price per share often excites investors who previously shied away from a stock because it looked too expensive.
Apple shares were trading down $0.07 a share in premarket.