Will Apple Shares Fall on Nasdaq Change?

Posted by Adam Sharp - Tuesday, April 5th, 2011

Apple currently makes up a whopping 20% of the Nasdaq 100 (top 100 tech companies that trade on the exchange).

But under a new plan unveiled by the exchange, their share will be cut to 12%. It's an effort to keep AAPL from dominating the index with its massive $311 billion market cap (as of 4/5/2011).

More on potential fallout for sharehodlers from the WSJ:

The move could mean significant selling pressure on Apple shares by money managers tracking the index. Because of the way the index has been calculated, Apple was given more than twice the weight in the index than it should have had based on its number of shares. Under the new plan, it will be reduced to the weight it should have given its size.

This move doesn't change AAPL's fundamental picture one bit. It's still a great company with solid growth. But it does mean that the stock could see temporary downward pressure as the change is phased in.

As shown in the chart below, Google, Intel, Microsoft, and Oracle will all gain percentage-wise.

New Nasdaq Apple Change

Read the rest at WSJ.com.


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