I saw a tweet earlier today that said that said you could add Exxon and Wal-Mart's market cap together and you would get to the size of Apple's market cap. That is crazy big! Apple got to be worth 700 billion dollars today and I can see with just a few more years and a few good products could be worth 1 trillion. There is also just a huge gap between the largest and the second largest company. I think it means that other companies will grow in size too.
I think it will also mean that Apple will be put into the DOW there is just no way they can ignore such a large company. And the reservations in previous years about the stock price has been fixed. Since the DOW is averaged from price last year when Apple would get put in at $600 it would add several hundred points to the DOW. It was too much of a shift. Now taking away a smaller company and adding Apple would probably increase the DOW's price but not in such a huge way.
If the DOW does not add Apple they are ignoring the goal which is to include the largest companies in the country. Apple will get added and then the price will go up again because more people will need to hold Apple to follow the DOW. Maybe Cisco or Coca-Cola will get bumped. Those are possibilities. We will know soon though.
No comments:
Post a Comment