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Apple (AAPL) Shares Juiced on Stock Split Rumor

May 10, 2011 4:40 PM EDT
AAPL Hot Sheet
Overall Analyst Rating:
    BUY (= Flat)

EPS Growth %: +92.2%
The late day spike in Apple (Nasdaq: AAPL) is being attributed to rumors of a 3-for-1 stock split.

Tuesday's rumor may be more wishful thinking as the company has resisted such a move despite a stock that has passed $100 benchmarks one after the other. However, with the stock stuck in neutral recently, Jobs & Co. may figure they could light a fire under the stock with a stock split.

While a stock split changes nothing fundamentally, the euphoria surrounding a potential split could send the stock higher.

In addition to the stock split rumors, there were late-day reports the U.S Patent Office published a series of 16 newly granted patents for Apple which included a iOS's virtual keyboard.

Shares of Apple closed up 0.5% after trading flat most of the session.


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