Senior analyst A M Sacconaghi made the observation in a note to clients, according to Reuters. The spilt would see the price of Apple’s stock half, but the number of shares double. Apple’s stock closed at US$610.76 yesterday most likely because of positive expectations for Apple in its case verses Samsung.
Financial newspaper Barron’s speculated back in April that Apple could join the Dow, suggesting that Apple and Google could replace Bank of America, HP and aluminium producer Alcoa. Barron’s suggested that the changes should be made to because the Dow is “due a makeover” as it hasn’t been adjusted since 2009.
Then a report appeared in May suggesting that Apple “is simply too hot for the Dow.”
If Apple was to join the Dow, it would have too much influence on the average. ConvergEx Group market strategist Nicholas Colas said: “It wouldn’t be the Dow Jones industrial average. It would be the Apple Plus Some Other Stuff Index.