Apple joins the Dow 30 replacing AT&T

Apple joins the Dow 30 replacing AT&T
Even though Apple's stock market capitalization (share price multiplied by number of outstanding shares) makes it the most valuable company in history at $736 billion, Apple had still not been recognized by the keepers of Wall Street data as being one of the 30 companies that best represents the stock market. That is, until today. Dow Jones, the company that holds the rights to the famous Dow Jones Industrial Average, has announced that Apple will join the 30 stock index on March 19th, replacing AT&T.

The change is partially being made because of a four for one stock split involving financial company Visa. But Apple's selection is an obvious choice anyway. Piper Jaffray analyst Gene Munster calls it "an historic moment." The index was created by Charles Dow in 1896 to track the stock price of certain industrial companies. Only GE is left over from the original list.


Apple went public on April 1st, 1980, listed on NASDAQ. Since that time the company has continuously gone from strength to strength with its innovative products including the Apple iPhone, Apple iPad and the upcoming Apple Watch. Last quarter, the company reported an amazing $18.1 billion in profits as it sold a record breaking 74.5 million iPhones in the period.

The announcement could lead to a flurry of buying in Apple as mutual funds tied to the index will need to buy Apple's stock to keep up with the change in the listings. Apple's shares are up 1.4% on the news to $128.12.

source: BusinessInsider

FEATURED VIDEO

8 Comments

1. Fallen1

Posts: 288; Member since: Nov 14, 2014

Not an apple fan but I'm surprised this took so long. But then again, I dont see them lasting either. At&t has much more to offer than electronics

2. Finalflash

Posts: 4063; Member since: Jul 23, 2013

It is the result of backroom dealings, not a logical step. Apple under Cook is all about stock value and financial moves/games for that purpose. By putting such an expensive company on the list a lot of funds will need to buy a lot of Apple stock, further pumping that bubble. This forces the hands, of those who would otherwise want a more stable investment than the current Apple stock bubble, to invest in Apple leading to long term share holders for Apple to maintain their current price.

8. winter_hat

Posts: 110; Member since: Feb 04, 2013

Stock bubble, lol. I'll take yours. Or if you don't have any, maybe you should short the stock....since it's value is just backroom dealings and all.

3. Napalm_3nema

Posts: 2236; Member since: Jun 14, 2013

A "dumb pipe" company has more to offer than a software and electronics company? It took so long because of Apple's stock price. The 7 for 1 split fixed the price and made them eligible.

5. kindlefireowner

Posts: 504; Member since: Dec 05, 2011

I hope the people behind comments, 1, 2, 3, and 4 don't manage their own money. Or manage money for anybody ever!!! Signed. Happy Apple shareholder. See you at $200 a share by 2017.

6. shinywindow unregistered

one. you don't own any stock whatsoever. two. you are a moron. three. buy gun and kill self.

7. kindlefireowner

Posts: 504; Member since: Dec 05, 2011

Try this dirtywindow! Find a job, keep that job for more than 6 weeks, save some money every month, then you can invest in your financial future. Just saying as I check my portfolios for the day. Yes, I have more than one. BTW Dirtywindow. I own Apple stock, but I carry a Android phone. Why? Because I like making money more than I care about Android. You might want to change your priorities.

9. soldier820

Posts: 115; Member since: Jan 27, 2015

That's cool, Apple worth so much and they are still making s**tty phones. Or maybe is just me. But hey whatever tho...

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.