Ternus Takes Over Apple Amid Record Stock Prices

Apple welcomes its first new CEO in 15 years as John Ternus takes over on September 1. He replaces Tim Cook, who transitions to executive chairman of the board.

The stock price is near record territory, with a market capitalization approaching $4.6 trillion and shares about 9% off the all-time high set this summer.

History suggests that CEO handoffs have little impact on stock performance in the first year. Since 2011, four similar transitions at U.S. megacap tech companies have seen varying results, with some stocks rising significantly while others fell.

The average first-year return is around 24%, but this hides the diversity of outcomes. Two large gains and one significant loss suggest that the handoff itself is not a decisive factor.