Apple has been traded on the NASDAQ exchange since it first went public back in 1980. For most of that time, AAPL has been part of the NASDAQ 100 index, so a gain or loss by the company has an impact on the technology-oriented exchange. A post on Barron's today posits that Apple, which is now the world's most valuable company, should be part of the Dow Jones Industrial Average instead.
However, Barron's thinks that it would be hard to admit Apple or Google to the Dow Jones index considering that the component companies are weighted on the price of their shares. Apple, which has been valued at $580 - $645 over the past few months, would simply "overwhelm" the index with a 26 percent weighting, almost double that of Dow component company IBM. Barron's notes that Apple's 9 percent jump in share price after the recent earnings call would have raised the DJIA a full 300 points.
Barron's suggests that a different weighting, in which the weighting of any stock is capped at an fixed percentage, might be needed for companies like Apple and Google to become part of the Dow Jones Industrial Average.
Barron's: Apple should be in the Dow originally appeared on TUAW - The Unofficial Apple Weblog on Mon, 30 Apr 2012 17:34:00 EST. Please see our terms for use of feeds.
When it comes to stocks, Apple is an influencer and any changes in its stock price will affect US stock indexes. That's what happened on Monday when the Dow Jones Industrial Average surged and the NASDAQ and S&P fell because of Apple, says a report in Forbes. The NASDAQ and S&P both include Apple, and the company's five day decline is dragging the two indexes down. Apple's stock is now sitting at US$580.13, a 4.2 percent decline from its previous high of $610.28.
AAPL declines again, S&P and Nasdaq see an impact originally appeared on TUAW - The Unofficial Apple Weblog on Tue, 17 Apr 2012 08:00:00 EST. Please see our terms for use of feeds.
Last month the stock index Nasdaq announced that it would be rebalancing the weighting of AAPL shares to better reflect the actual number of shares floating on the market. At the time, AAPL accounted for 20.5 percent of the Nasdaq. After the rebalancing today, AAPL now accounts only for 12.5 percent of the Nasdaq.
When Nasdaq made the announcement, it issued a warning that the rebalancing might affect AAPL shares in the short term due to fund managers readjusting their holdings. However, it seems that any negative effect on AAPL's share price was negligible. Apple closed down only 1.1 percent today to end at $346.45. Many see AAPL advancing to upwards of $540 a share by January, and some even think Apple will be the world's first trillion dollar company.
Disclaimer: The author holds a position in AAPL. TUAW does not provide investment advice; consult an expert before buying or selling equities.
AAPL shares survive rebalancing on Nasdaq today originally appeared on TUAW on Mon, 02 May 2011 20:00:00 EST. Please see our terms for use of feeds.Source
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The Wall Street Journal reports that Nasdaq will drop Apple's profile in its Nasdaq-100 stock index, lowering Apple's share from 20.5 percent to around 12.3 percent, more in line with the number of actual Apple shares out there. Apple is one of 81 companies who are seeing their shares lowered by the rebalance, while 19 other companies, including Google and Microsoft, will have their shares increased. The index was last adjusted in this way back in 1998, but back then, Apple obviously wasn't nearly as big a company financially as it is now, so Nasdaq is simply adjusting things to bring shares more in line with the actual market.
The changes should take effect on May 2, and Nasdaq does say that it expects some trades to happen as a result of the changes, which may lead to some "instability" in the markets for a short period. But in general, the changes are just to make sure that a huge amount of growth (or failure) on Apple's part doesn't upset the index too much.
As always, we are not financial professionals, and any news about AAPL stock should not be taken as financial advice.
Nasdaq to diminish Apple's portion of the Nasdaq-100 originally appeared on TUAW on Tue, 05 Apr 2011 16:00:00 EST. Please see our terms for use of feeds.Source
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