To me, the Dow Jones Industrial Average is about what makes American great. Decades ago, it was about railroads, cars and steel. And while these still are incredibly important today, the future is about transformative technologies like mobile and the Internet.
Apple is at the center of these forces.
What’s more, the brand is global and greatly admired. But Apple also has a powerful ecosystem, in terms of developers and its vendors. It’s a company that’s “built to last.”
Its growth prospects are still massive. Apple is in the early phases of the tablet revolution. And it likely will conquer new markets, such as interactive television.
The one argument against Apple is its high price — Given that the DJIA is a price-weighted index, the company would have represented about 11% of the overall movements. So something might need to be done to the formula to alter that. Of course, had Apple been a part of the index for, say, the past five years, it would have made the markets seem a bit more robust. During this time, Apple’s stock was up 337%.
But with so much doom and gloom in the U.S., success stories like Apple are refreshing to see. It’s time Apple gets its due and becomes a card-carrying member of the Dow.
– Tom Taulli, IPOPlaybook Editor