Jim Cramer Says Don't Buy Apple Stock Ahead of Split

Author:
Publish date:
Video Duration:
51

Following leading big tech as the first company to achieve a $2 trillion market capitalization, Apple is set for a stock split.

Investors should keep an eye on Apple’s 4-for-1 split, which is set to occur after the close of trading on August 28.

This marks Apple's fifth stock split since it became a publicly-traded company. The company last split its stock in a 7-for-1 split back in 2014.

TheStreet’s Apple Maven and founder and portfolio manager of DM Martins Capital Management Daniel Martins suggests treating a stock split like a pizza. “Do you have more pizza by cutting it into more slices? Would you pay more for pizza that is cut in 16 slices rather than eight or four?” Martins wrote.

"I wasn’t bearish on Apple in mid-July, but the stock was showing signs of waning momentum after a powerful run. When shares dipped to $355, it was close enough to our $350 price target to satisfy the correction outlook," wrote TheStreet's Bret Kenwell. "When the stock burst to new highs later that month on better-than-expected earnings results, our sights turned to the upside. Specifically, I was looking for a test of the two-times range extension up near $440. The $440 level was resistance for a few days before becoming support. After the recent melt-up, Apple stock really ripped higher."

He noted that, "now things get tough for the bulls."

So, what does Jim Cramer think about the stock?

He certainly still loves the stock, but in the video above, Cramer breaks down why he's certainly not a buyer here. 

Visit the Apple Maven for the latest on Apple and its upcoming stock split. 

Latest Videos From TheStreet and Jim Cramer: