The increased penetration level of smartphones across the developed world, along with heated competition in the market for mobile devices has made numerous investors jittery towards Apple Inc. (NASDAQ:AAPL). The company went public in 1980 and already conducted 3 stock splits since that time. Apple can create additional value for its existing shareholders by splitting its stock, and enabling additional liquidity and adding a broader investor base for its stock.
Since the attitude towards owning Apple Inc. (NASDAQ:AAPL) has been rather negative in 2013, the company can enhance its market cap by doing a stock split in the near future. Apple’s senior management has said that the company has looked into a possible stock split, but hasn’t executed one yet. And the company’s CEO did state that Apple might consider a stock split in the future.
Apple Inc. (NASDAQ:AAPL) is expected to unveil a lower priced iPhone handset to earn more revenues from this business segment. iPhone revenues make up more than 50% of Apple’s total revenues, and the falling growth rates from the segment concerned many investors. But if Apple can come up with lower priced phones and larger screen phones the company can drive its growth rate and gain more confidence from investors.
3. Netflix, Inc. (NASDAQ:NFLX)
The high-flying Netflix, Inc. (NASDAQ:NFLX) has been a top performer in the S&P 500 in 2013. The company is trading near 52 week highs, after it has portrayed its ability to grow its subscriber base in the U.S. and in the International market. The innovative Netflix has gone from being a curator of commodity content to becoming a producer of original shows, which has driven its subscriber additions a lot in 2013. The company now has close to 30 million members in the U.S. and almost 8 million in the International market for its growing Internet TV platform.
Netflix, Inc. (NASDAQ:NFLX) is investing heavily in adding more and more content for its subscriber levels, and hoping to turn its International operations around. The company’s International business is losing money and the company’s management is projecting losses from the overseas operations to persist for another 2 years or so. Netflix is trying to build a global franchise for its Internet video streaming business and is now operating in more 40 countries across the globe. The company snapped up 14 Emmy Award Nominations and is fast proving its ability to be an original content company.
With the company’s stock hitting new highs recently, the company can create even more value for its investors by doing a stock split. The last time Netflix, Inc. (NASDAQ:NFLX) did a stock split was way back in 2004, and can pursue a 2-for-1 or even a 3-for-1 stock split to grow its market cap even more.
