Intel shares took a significant hit on Tuesday, sparking concerns that the company may be at risk of being removed from the Dow Jones Industrial Average. This decline follows a disappointing second-quarter earnings report, which resulted in the stock plummeting to its lowest level since 2013.
As one of the original tech companies included in the DJIA back in 1999, Intel’s current performance has been less than stellar. With shares down almost 60% since the beginning of the year, it is now the worst-performing component of the index.
The Dow Jones Industrial Average is a key benchmark that tracks 30 of the largest publicly-owned companies in the U.S. market. Intel’s low weighting in the index, at just 0.3%, raises concerns about its future membership status.
Membership changes in the DJIA are rare, with the last swap occurring in February when Walgreens Boots Alliance was replaced by Amazon. While there has been no official comment on Intel’s status from S&P Dow Jones Indices, the company’s recent performance suggests that it may be in jeopardy of losing its place in the prestigious index.
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