Apple stock advances ahead of stock split

Apple Inc (NASDAQ:AAPL) stock advanced strongly on Monday, the record date for its proposed 4-into-1 stock split. In opening deals the iPhone maker gained over US$17 per share or 3.46% to change hands at US$514.39 each. The stock split, based on the current price, will see shareholders on the stock register at the end of the day receive four new shares priced at around US$128 for every existing share they own. It comes only days after Apple’s valuation reached above US$2 trillion for the first time. READ: Which stocks will be next to join trillion dollar club? As tech stocks surged amidst the backdrop of pandemic and lockdown, Apple’s stock is up some 70% in 2020 to date. The run saw chief executive Tim Cook’s name join the tech sector’s billionaire’s list. Cook, who stepped in to replace founder Steve Jobs in 2011, owns 847,969 shares directly and was paid over US$125mln last year. In 2015 he told Fortune magazine he plans to donate US$800mln fortune to charity before he dies. Apple was the first company to be valued at US$1 trillion in 2018. Third-quarter results at the end of July revealed US$59.7bn of revenue, versus US$53.8bn in the same quarter of last year. Net income climbed to US$11.25bn from US$10.04bn, defying analyst estimates of a lower figure. Apple saw its smartphone sales boosted by the launch of its iPhone SE in April, while US stimulus payments to citizens and the relaxation of lockdown measures over May and June also helped to drive performance. Sales of iPads and Macs also benefited from the shift towards home working, with the company saying the surge in demand had caused shortages of stock.