Apple, once the world’s most valuable company, contemplates a stock split in 2025 to restore investor confidence amidst a year of challenges.
The possible stock split, a tactic Apple has used multiple times in history, could make shares more accessible to retail investors and attract new investments.
A stock split reduces the share price by increasing shares outstanding, without affecting market capitalization or total holdings value.
Lower share prices from a split can broaden Apple's shareholder base and enhance liquidity.
Apple's struggles in 2025, especially in generative AI compared to competitors, have led to investor skepticism and stock price decline.
A stock split could project optimism about Apple's future growth, coinciding with anticipated unveilings like iOS 26 and macOS 26 at WWDC 2025.
Historically, Apple's stock splits have corresponded with periods of growth or recovery, reassuring investors and driving demand.
Critics may see stock splits as cosmetic, but they have a psychological impact on investors, making the stock appear more affordable and driving demand.
With its strong financial position, Apple could use a split to project confidence, attract new investors, and stabilize its stock price.
A stock split before WWDC 2025 could help Apple regain momentum among tech stocks and set the stage for a stronger performance.