Apple's Stock Split History

Apple's stock has split five times since its IPO -- what does that mean for investors?

By Adam Levy – Updated Dec 10, 2024 at 8:49 PM

Key Points

Since its 1980 IPO, Apple has had five stock splits to adjust share prices for management and repurchases.
Stock splits do not change Apple's market cap but have historically increased investor interest and short-term prices.
Despite stock splits, Apple's long-term stock value mainly reflects its sustained growth in sales and profitability.

Stock splits can stir up a lot of investor excitement. Apple (AAPL -0.49%) is a perfect example. Since the tech hardware leader went public more than 40 years ago, Apple has split its shares five times and created massive shareholder wealth.

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Stock Split

A multiplying or dividing of a company's outstanding share count that doesn't change its overall market value or capitalization.

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A timeline from 1980-2020 showing the history of Apple stock, including price changes and product releases. — Image source: The Motley Fool.

Some investors get excited about stock splits because they believe they make the stock cheaper. A stock split occurs when the company issues new shares, and as a result, the price of each share goes down.

But the valuation usually remains unchanged since the decrease in stock price and increase in shares outstanding usually offset each other. There's no change to a company's market capitalization or enterprise value.

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aapl % change 2003-2023 — Image source: The Motley Fool.

Much like the stock splits in Apple's early history, the company's stock splits in the 2000s and later were preceded by a run-up in stock price. Performance in the year after the split was respectable, too. After another 2-for-1 split in 2005, Apple divided its last two splits by larger amounts in 2014 and 2020.

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Data sources: Apple and YCharts.
Stock Split Date	Stock Split	Apple Market Cap	Stock One-Year % Return Prior to Split	Stock One-Year % Return After Split
June 16, 1987	2-for-1	$5 billion	131%	7%
June 21, 2000	2-for-1	$18 billion	140%	(60%)
Feb. 28, 2005	2-for-1	$37 billion	275%	53%
June 9, 2014	7-for-1	$565 billion	49%	36%
Aug. 28, 2020	4-for-1	$2.1 trillion	139%	19%

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However, more important than Apple’s stock splits is the business’s performance. Each time the tech hardware designer has split its stock, it has experienced strong growth in sales and profitability. The exception was in 2000 when sales dipped between the dot-com bust and the release of the iPod in 2002.

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The lesson: Companies such as Apple split their stocks for good reasons, which include managing stock-based compensation for employees, as well as share repurchase programs to return excess cash to shareholders. However exciting stock splits may seem, the real reason to buy and hold a stock like Apple long term is because of secular growth trends that benefit the company.

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About the Author

Adam Levy is a contributing Motley Fool stock market analyst covering technology, consumer, and financial stocks and how policy, economic, and consumer trends shape personal finance, Social Security and retirement savings. Before The Motley Fool, Adam was a financial advisor at Edward Jones. He studied finance and electrical engineering at Carnegie Mellon University.

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Adam Levy has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.