The 3 Worst Stocks in the Dow Today

Before you go, we thought you'd like these...
Before you go close icon

The Dow Jones Industrial Average (INDEX: ^DJI) was essentially flat today, but some companies fared worse than others. These were the three biggest losers:

Company

Price Change

Hewlett-Packard (NYS: HPQ) (3.2%)
Intel (NAS: INTC) (2.3%)
Microsoft (NAS: MSFT) (2.2%)

Shares of the three tech giants were down sharply after Dell reported weak-sauce earnings that failed to match its own guidance. The poorest performance came from consumer notebooks as Apple (NAS: AAPL) iPads and iPhones continue to steal market share. It also offered weak guidance, and shares fell some 20%. Weak consumer computer sales are obviously bad news for hardware makers HP and Intel, as well as Microsoft.

Each of the three is trying to address the changing landscape in its own way. HP announced today that sales fell 3% and earnings fell 30%. It also said that it'll go ahead with its plan to lay off 8% of its workforce, mainly through early retirement, to save $3 billion to $3.5 billion annually. Shares eventually soared 9% after hours.


Intel continues to branch out into the market for tablet chips, while Microsoft today released So.cl, its social network, to limited fanfare. Rumor has it the software giant plans to release a version of Microsoft Office for mobile devices.

Intel and Microsoft lost to the market today, but I'm not particularly worried about their long-term prospects given reasonable growth prospects and valuations.

These companies are just one way to play the tech revolution, but there is another Foolish pick, too. The Motley Fool has just released a free report on mobile named "The Next Trillion-Dollar Revolution" that details a hidden component play inside mobile phones that's also absolutely dominating the exploding tech market in China. Inside the report, we not only describe why the mobile revolution will dwarf any other technology revolution seen before it, but we also name the company at the forefront of the trend. Hundreds of thousands have requested access to previous reports, but you can be among the first to access this just-released report by clicking here -- it's free.

At the time this article was published Ilan Moscovitzowns shares of Apple. You can follow him on Twitter, where he goes by@TMFDada. The Motley Fool owns shares of Intel and Microsoft and Apple.Motley Fool newsletter serviceshave recommended buying shares of Dell, Intel, Apple, and Microsoft and creating bull call spread positions in Microsoft and Apple. The Motley Fool has adisclosure policy. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners