Apple in, AT&T out of The Dow
- 07 March, 2015 02:53
Apple, whose stock market value recently ballooned to more than $700 billion, later this month will take AT&T's place on the Dow Jones Industrial Average.
The Mac and iPhone/iPad maker (NASDAQ: AAPL) will become one of The Dow's 30 blue chip companies after trading closes on March 18.
The company's share price was more than $128 as of this writing. A 7-for-1 share split by Apple last year and a more recent 4-for-1 split by Visa enabled the Dow to let Apple in with messing up its delicate balance.
Other tech heavyweights on the bellwether index include Cisco, IBM, Intel and Microsoft.
And as Dow Jones notes in its press release about the Apple-for-AT&T swap: "The Telecommunication Services sector will continue to be represented in the DJIA by Verizon Communications Inc."
There's an "ouch" for AT&T. Though at least the carrier does get to sell iPhones for use on its network.
Meanwhile, Apple's next big financial milestone: The $1 trillion mark? Activist investor Carl Icahn thinks so.