On Passing Fads And Stock Splits


Here's a link to something you don't see much of anymore: a major high-tech company announcing a 2-for-1 stock split.

Apple dropped this one on its shareholders this morning:

Each shareholder of record at the close of business on February 18, 2005 will receive one additional share for every outstanding share held on the record date, and trading will begin on a split-adjusted basis on February 28, 2005.

In two years, the Cupertino, Calif.-based company has seen its shares jump from about $14 per share to nearly $80. The stock charts don't lie.

Meanwhile, Dell Computer is having a relatively difficult day on Wall Street. This is after the Round Rock, Texas-based company turned in quarterly earnings yesterday that disappointed analysts. (Although, Dell blamed it on a one-time, 11-cent-per-share tax charge for bringing foreign revenue back into the U.S.)

But the timing of the Apple and Dell events is noteworthy. It was late last year that Dell CEO Kevin Rollins told the world he thought Apple's iPod was a passing fad.

Ever since, though, investors and technology professionals have been contemplating what the iPodization of other technologies--including video playback and satellite radio, among others--would do to the digital home and office segments.

In any event, Rollins may start singing a different tune about the iPod after he gets a better look at this chart.