The stock-market math hasn't been adding up for Microsoft for some time now. Apple's NASDAQ shares are trading faster than keister-stashed cigarettes in prison, while Microsoft's are treated more like the chow hall's fruit cocktail. So what can be done to help our local tech giant's stock equation calculate better? How about changing the math itself?
That's exactly what happened today when the NASDAQ-100 devalued Apple's shares of its stock exchange index by nearly half, after factoring in a bigger hit stemming from the company's brush with bankruptcy in the mid-to-late '90s.
Nasdaq OMX Group Inc. (NDAQ) reduced the iPad and iPhone maker's share of the Nasdaq-100 Index's value to about 12.33 percent from 20.49 percent.
"Apple's grown a ton since 1998, and its weighting's been allowed to become too large a portion of the index," said Thomas Garcia, head of equity trading at Santa Fe, New Mexico-based Thornburg Investment Management Inc., which oversees about $80 billion. "To have a company be 20 percent of your index isn't an accurate reflection of what's actually happening in that market. Nasdaq wants its index to be diversified."
As a refresher, here's Microsoft's stock chart since 2005. Try not to fall asleep.
Now here's Apple's chart--a grade Lance Armstrong might have trouble pedaling up (also, note the extra zero in value).
Steve Ballmer, you can send the gift basket to: NASDAQ CEO Robert Greifeld, 4 Times Square, New York, NY 10036.