Here's How Intel Influences the Dow
The following video is part of our "Motley Fool Conversations" series, in which senior technology analyst Eric Bleeker and consumer goods editor and analyst Austin Smith discuss topics across the investing world.
While indexes like the Nasdaq and S&P 500 are market weighted -- meaning each stock's weighting in the index is roughly proportional to its market cap -- the Dow Jones Industrial Average uses a wonky price weighting mechanism that can leave certain stocks over- or underweighted. Today, we're looking at Intel and how its movements influence the Dow. While Intel is 3.5% of the Dow's value, it's only weighted at about 1.6% of the index. That leaves it as the 24th highest weighted Dow stock, despite being the 12th most valuable company in the index. To see more analysis on Intel and how its weighting stacks up to other tech peers in the Dow, watch the video below.
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At the time this article was published Austin Smithowns shares of Intel.Eric Bleekerhas no positions in the stocks mentioned above. The Motley Fool owns shares of Apple, International Business Machines, Intel, and Microsoft.Motley Fool newsletter services recommendApple, Intel, and Microsoft. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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