Apple, IBM, and Netflix Just Split Their Stocks, but It’s Not What You Think

I subscribe to a plethora of stock market information services. It comes with the job, you know. Earlier this week, several of these tools sent me a whole lot of news announcements, nearly buzzing that phone out of my pocket. I was in for an eye-opening discovery.

A flood of buzzing surprises

According to these unexpected notifications, Netflix (NASDAQ: NFLX) just split its stock. Oh? Maybe they announced it in that game-changing earnings report and nobody noticed? I guess it could happen.

Wait — International Business Machines (NYSE: IBM) did the same thing. Then there’s Bank of America (NYSE: BAC), Apple (NASDAQ: AAPL), and Toyota Motor (NYSE: TM), just to name a few. There’s no way all of these giants could have performed stock splits in unison, like a Gregorian chant of Wall Street accounting tricks, without generating miles and miles of headlines. Besides, I couldn’t find the same stock-split announcements through my usual sources, which focus on the American stock market.

So I looked at the notifications again, zeroing in on the stock tickers. And then it hit me.

These stock splits, all taking place on Wednesday, didn’t actually involve the American stocks. Every single announcement was about each company’s presence on the Argentinian stock market, at the Buenos Aires exchange.

Don’t cry for me, Argentina. If anything, I should cry for you.

Yes, Netflix and Apple really did split their stocks this week, but not because their listings on the NYSE and Nasdaq exchanges were growing too pricey. Most of them may get there soon, and I wouldn’t be terribly surprised to see a normal Netflix split someday soon — but Bank of America’s shares only cost $33 each.

Things look very different on the Buenos Aires exchange, where investors must struggle with Argentina’s incredible hyperinflation. Here, Netflix trades at roughly 14,700 Argentine pesos per share after Wednesday’s 3-for-1 stock split. That’s about $18 at current exchange rates. But things change fast in Argentina….