NEW YORK (TheStreet) -- One of the most highly anticipated events on the market finally arrives.
When the market opens this morning, shares of Apple (AAPL)AAPL, which closed Friday at $645.57, will begin trading at $92.22 as a result of the company's 7-for-1 stock split, announced in April.
Since the announcement, Apple's stock has been on an incredible run, soaring 24% and netting new 52-week highs seemingly in every session. The shares are up 16% year to date. But since reaching its 52-week low of $388.87 last June, Apple stock has surged more than 66%.
In an appearance on CNBC on Friday, Mark Newton, chief technical analyst at Greywolf Execution Partners, said that Apple's stock has gotten to a "nosebleed level." He added, "I don't think the stock can make much progress before it pulls back." Investors want to know how much further the shares can run.
Depending on sentiment, the shares will begin trading at their split-adjusted price above or below $92.22. Apple management, and in particular CEO Tim Cook, has been very clear about wanting the stock to become more accessible to a larger number of investors. Newton is likely underestimating the power of psychology.
A lower share may entice more buying among would-be investors who prefer a larger number of shares. And if those would-be investors were unwilling to shell out the cash for stock trading at $645, Apple at $92 will appear more affordable. It's not just about the psychological effect, however. There's a precedent here as well.