Apple shares may sink below Microsoft in S&P 500 influence after 2013 losses
Apple is in danger of having its four-year run as the leading mover in the S&P 500 stock index ended by old nemesis Microsoft after a rough year in the markets that has left Cupertino battered and Redmond resurgent.
Shares of Apple and Microsoft have taken opposite roads in 2013.
Apple's precarious position stems from a combination of factors. The S&P 500 is a weighted index --?that is, certain companies are given more power over the movement of the index than others --?and weights are based broadly on each company's market capitalization.
By virtue of its impressive market cap, Apple enjoys the highest weighting in the index, at about three percent. This means little when the stock is up, but magnifies the effects of a downturn like Apple has faced this year, having slumped by around one percent year-to-date.
Microsoft sports the third-highest weight in the index?with just under two percent. Combined with the company's nearly 40 percent year-to-date share price leap and second place ExxonMobil's lackluster performance, this means it is Microsoft, rather than Apple, that is the tech company most likely to lead the S&P when trading closes on Dec. 31.
According to data compiled earlier this week by Bloomberg, Apple is not only in danger of losing its leadership position, but may even end the year as the biggest drag on the index. At the close of trading Monday, Apple's 13.74-point slump was good enough for a corresponding 1.6-index point decline for the S&P, compared to a 9.2-index point boost from Microsoft.
Shares of Apple and Microsoft have taken opposite roads in 2013.
Apple's precarious position stems from a combination of factors. The S&P 500 is a weighted index --?that is, certain companies are given more power over the movement of the index than others --?and weights are based broadly on each company's market capitalization.
By virtue of its impressive market cap, Apple enjoys the highest weighting in the index, at about three percent. This means little when the stock is up, but magnifies the effects of a downturn like Apple has faced this year, having slumped by around one percent year-to-date.
Microsoft sports the third-highest weight in the index?with just under two percent. Combined with the company's nearly 40 percent year-to-date share price leap and second place ExxonMobil's lackluster performance, this means it is Microsoft, rather than Apple, that is the tech company most likely to lead the S&P when trading closes on Dec. 31.
According to data compiled earlier this week by Bloomberg, Apple is not only in danger of losing its leadership position, but may even end the year as the biggest drag on the index. At the close of trading Monday, Apple's 13.74-point slump was good enough for a corresponding 1.6-index point decline for the S&P, compared to a 9.2-index point boost from Microsoft.
Comments
First problem with this "story" was referring to Bloomberg as a reliable source of information on Apple.
Bloomberg didn't give any information about Apple. They used publicly available information about stock performance and known index weightings to make a projection. Do you attack any source that says something you don't like? Grow up.
That aside, this is an enormously unimportant story. It doesn't matter to Apple or to its investors if AAPL has less or more influence in the S&P 500 index value. Indices like the S&P take value from their component stocks, not the other way around.
Bloomberg didn't give any information about Apple. They used publicly available information about stock performance and known index weightings to make a projection. Do you attack any source that says something you don't like? Grow up.
That aside, this is an enormously unimportant story. It doesn't matter to Apple or to its investors if AAPL has less or more influence in the S&P 500 index value. Indices like the S&P take value from their component stocks, not the other way around.
Just like the NYTimes site, Bloomberg is a known Apple troll. Wake up, "wakey."
Gosh, I thought Bloomberg was anti-Google. Guess they just don't like either one then.
Just like the NYTimes site, Bloomberg is a known Apple troll. Wake up, "wakey."
I don't know why Bloomberg or NYT would troll Apple, and I haven't seen it (nor looked for it). But even if they have written unjustifiably negative articles in the past, which seems counterproductive for a major financial news organization like Bloomberg, this article has absolutely nothing to do with Apple as a company. You understand that right?
This kind of stories get more and more reticulous.
Even soma double blinded WSJ jerks should realize: this is a 100% made up story.
You understand that right?
What side of the bed did you get out of Wakey? You immediately jump on this guy, admit your ignorance of Bloomberg and NYT... so what should anyone read what you have to say? You are just like those who occasionally come on here and nit pick over grammar and spelling... he was making a comment. you are making an ass of yourself. Bet you have a lot of friends don't you? You may not be an Apple troll but you are the worst kind, just a TROLL. Time to pile on men! Yes, I am having a bad and no, you didn't start it, but it seems like you would have liked to.
What side of the bed did you get out of Wakey? You immediately jump on this guy, admit your ignorance of Bloomberg and NYT... so what should anyone read what you have to say? You are just like those who occasionally come on here and nit pick over grammar and spelling... he was making a comment. you are making an ass of yourself. Bet you have a lot of friends don't you? You may not be an Apple troll but you are the worst kind, just a TROLL. Time to pile on men! Yes, I am having a bad and no, you didn't start it, but it seems like you would have liked to.
Hi, it's nice to meet you bobby! No, I'm not a troll. I'm an anti-troll.
This seems wildly ironic. Apple, which is in the process of taking over the world, with 25% of the entire phone market in the US (up from 17% last year and 10% the year before), is struggling in the stock market. While MS, which is rapidly sinking towards irrelevance, is the leading mover. What a world!
In other words, call your brokers, issue some buy orders!
This seems wildly ironic. Apple, which is in the process of taking over the world, with 25% of the entire phone market in the US (up from 17% last year and 10% the year before), is struggling in the stock market. While MS, which is rapidly sinking towards irrelevance, is the leading mover. What a world!
I'm having a problem wrapping my mind around the fact that Apple is still by far the most valuable company by Market Value at 475 B, Exxon at 407 B, Google at 345 B, and MS at 317 B. The only company in 2 years who has either trade places for the top spot or even come close is Exxon. MS may be a threat to Google but they are not even close to challenging Apple in value.
Do you realize that if Apple fires a janitor, the headlines will read, "Rumors of a mass layoff at Apple swirl around Cupertino."
Bloomberg rings the closing bell on December 31st, while calling out, "DOOM. Doom, I say for all of Apple. Woe upon all who pray to Cupertino."
Stock prices are not a reliable indicator as to how well a company, or economy is doing. A stock price is simple what a bunch of computers are willing to pay to purchase a single share. Most trading today is automated. That's what caused the Black Monday crash of '87.
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Sadly this is now the new AI norm / MO what ever you want to call it. I wish DED would just spin off and have his own blog and I'd leave here and join that quite happily. In fact once I hit 10,000 I may well pull a Soli anyway.
Bloomberg didn't give any information about Apple. They used publicly available information about stock performance and known index weightings to make a projection. Do you attack any source that says something you don't like? Grow up.
That aside, this is an enormously unimportant story. It doesn't matter to Apple or to its investors if AAPL has less or more influence in the S&P 500 index value. Indices like the S&P take value from their component stocks, not the other way around.
Yup. And yup. Clear simple analysis of the info provided.
And I don't believe the fine folks below even read your second para. Or if they did, remotely understood it.
There's a lot of people in this church, err, tech forum who can "out-compute" me by an exponential amount, but when it comes to (often perverse and out of sync) finance and markets don't have clue one,
Quote:Just like the NYTimes site, Bloomberg is a known Apple troll. Wake up, "wakey."
What side of the bed did you get out of Wakey? You immediately jump on this guy, admit your ignorance of Bloomberg and NYT... so what should anyone read what you have to say? You are just like those who occasionally come on here and nit pick over grammar and spelling... he was making a comment. you are making an ass of yourself. Bet you have a lot of friends don't you? You may not be an Apple troll but you are the worst kind, just a TROLL. Time to pile on men! Yes, I am having a bad and no, you didn't start it, but it seems like you would have liked to.
Touchy, touchy....
Does this mean, I should throw my freshly unpacked iPad Air right out of the window?
This kind of stories get more and more reticulous.
Even soma double blinded WSJ jerks should realize: this is a 100% made up story.
"Reticulous" indeed. On multiple levels.
WakeFinance is no troll, and the stock market's doing what it does - one piece of which is boosting stocks it's excited about and not acting excited about things which are cyclically out of favor. Until they go off in another direction, fall out of love, fall into new love, etc., etc.
And this is simply data about what the markets are doing now and the extrapolated trend (knowing that "past performance is no guarantee of future returns").
So with these posts you're not "troll detectives," rather simply reflexive bashers....