Apple’s decision to split its shares was made to help make it more accessible to investors, CNBC’s Jim Kramer said Friday, citing a conversation with CEO Tim Cook.
“I think Apple is making the right move. Tim told me last night, “Hey, I want more people available,” Cramer told Squawk Box. “And these other companies need to do that, too.”
The iPhone maker, which saw sales growth of 11% in its last quarter, also announced Thursday that it will split shares four by one at the end of August.
Apple shareholders will receive three additional shares at the close of business on August 24. Apple traded around $ 407 on Friday morning, meaning investors will be able to buy shares for about $ 1
Apple has done this many times in the past, most recently in 2014, when it split shares from seven to one. Apple was trading north of $ 600 a share at the time.
The division of shares does not change the foundations of the company, Kramer explained to “Squawk on the Street.” But Cramer said it could make stocks more attractive to retail investors, who may deviate from investing in a company because of the high price – like a shock from a stock sticker.
“The idea that he wants more people in stock is refreshing,” Kramer told Apple Cook. “He doesn’t play with hedge funds. He plays for people who buy the product and have a 99% satisfaction rating. That’s what he plays for.”
The Crazy Money host said other companies don’t seem to put as much emphasis on retail accessibility as Amazon. The e-commerce and cloud giant traded at about $ 3,200 per share, based on moves in pre-sales markets.
“Apple is interested in the little boy. Amazon is not focused on that. They are focused on handing over the goods to the little man, “Kramer said.
Disclosure: Cramer’s charitable trust owns shares in Apple and Amazon.