‘Apple cares about the little guy’

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Apple’s decision to split its stock was made to make it more accessible to investors, CNBC’s Jim Cramer said on Friday, referring to a conversation he had with CEO Tim Cook.“I think Apple is making the right decision. Tim told me last night, “Hey, I want more people in the stock,” “Cramer said on” Squawk Box. ” “These other companies should do that too. ”

The iPhone maker, which reported an 11% sales increase in its most recent quarter, also said on Thursday that it would conduct a stock split of four for a late August.

Apple shareholders will receive three more shares at the close of business on August 24. Apple was trading around $ 407 on Friday morning, which means investors would be able to buy stocks around $ 102 when the stock starts trading on a split-adjusted basis. 31.

Apple has also done this several times in the past, most recently in 2014, when it did a seven-to-one stock split. Apple was then trading north of $ 600 per share.

A stock split doesn’t change the fundamentals of a company, Cramer explained on “Squawk on the Street.” But Cramer said it could make a stock more appealing to retail investors who might be hesitant to invest in a company because of the high price tag – much like a sticker shock to stocks.

“The idea that he wants more people in his stock is refreshing,” Cramer said of Apple’s Cook. “He doesn’t play with hedge funds. He plays with the people who buy the product and has a 99% satisfaction rate. That’s who he’s playing. ”

The host of “Mad Money” said other companies don’t seem to place as much emphasis on accessibility for retail investors, like Amazon. The e-commerce and cloud giant was trading around $ 3,200 per share, depending on pre-market movements.

“Apple cares about the little guy. Amazon doesn’t focus on this. They focus on getting the goods to the little guy, ”Cramer said.

Disclosure: Cramer’s charitable trust owns shares of Apple and Amazon.

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