The Market: Ups and downs

In barista news, Starbucks Corporation (SBUX) hit a 52 week high Thursday as it climbed to $98.20 a share due to a 2-for-1 common stock split. Starbucks Corporation shares were trading at $76 per share last year on this day, giving it a 29 percent increase. The percentage gain means if you had invested $1,000 into Starbucks Corporation shares last year you would have $1,290 today. Many companies decide to gain more attention and reach more investors through stock splits because the share price is expensive. Starbucks Corporation has 191,000 employees worldwide and is valued at $73.3 billion by market capitalization.

According to Starbucks Corporations financial investors website, any shareholder of Starbucks as of March 30’s closing market day will receive an additional share for every share owned. Upon arrival of April 8, Starbucks will cut their share price in half as all stock splits do. This means if you own 100 shares of Starbucks at $90 per share as of March 30, you would then own 200 shares at $45 per share on April 8. Your monetary ownership didn’t change because you still have the same net value. Just your shares and price per share changed due to the 2-for-1 stock split.

In online social media news, Facebook announced a new feature through the messenger application, which allows users to transfer funds from one user to another. This feature is strictly designed to assist users of the messenger application who have the convenience of the contact application within the app. Facebook is hoping that a no-charge monetary service to hundreds of millions of users will attract banks, marketing, advertising and most importantly credit card companies. Now with many new technological advances in monetary and financial applications comes warning signs and theft. One of the biggest issues that I see arising from an online e-wallet through Facebook is hacking and theft. If Facebook does make this monetary service legitimate and safer than expected they could potentially amass tens of billions in more revenue while competing against Apple’s digital pay service. They would eventually rise up to the biggest companies by market capitalization. This could be a real industry changer in the tech and online market.

Below shows the up to date 4.75 percent cumulative gain in the current 2015 Spring Stock Semester Holding. It will end May 2015 as the Spring Semester comes to an end. In comparison to the general market tracking indexes, my Spring Semester Holding has beaten the Dow Jones Industrial Average by 2.45 percent and 1.75 percent respectively. The Dow Jones Industrial Average and the S&P500 indicies have gained 2.3 percent and 3 percent respectively in the same time frame.


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