Apple's (AAPL) weighting in the Nasdaq 100 Index (NDX) will be cut significantly on May 2. Currently 20% of the index, AAPL's weighting will fall to about 12%.
The weightings of Microsoft (MSFT) and Oracle (ORCL) will double as part of the adjustment.
The move is being done to rebalance the stock weightings to better reflect underlying market capitalizations. Currently in the NDX, AAPL's weighting is 6x higher than MSFT even though AAPL's market cap is only 46% higher currently.
Because there are index products based on the NDX such as the Powershares QQQ Trust (QQQQ), the shift will likely put near term selling pressure on AAPL and a bid underneath those stocks whose weighting will significantly increase.
position in MSFT
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