Market News Video
MNV MNV 10 Stocks Crossing Below Their 200 Day Moving Average
Free Dividend Report - Top Ranked Stocks

Featured MNV Articles:

First Week of September 15th Options Trading For Alphabet (GOOG)
Wednesday, January 25, 10:49 AM ET, by Market News Video Staff

Investors in Alphabet Inc (GOOG) saw new options become available this week, for the September ...

International Business Machines a Top Ranked SAFE Dividend Stock With 3.1% Yield (IBM)
Thursday, January 26, 7:32 AM ET, by Market News Video Staff

International Business Machines Corp. (IBM) has been named to the Dividend Channel ''S.A.F.E.. ...

Noteworthy ETF Outflows: VT, KO, C, IBM
Thursday, January 26, 10:56 AM ET, by Market News Video Staff

Symbols mentioned in this story: VT, KO, C, IBM Exchange traded funds (ETFs) trade just ...

International Business Machines Becomes #55 Most Shorted S&P 500 Component, Replacing Skyworks Solutions
Thursday, January 26, 2:10 PM ET, by Market News Video Staff

The most recent short interest data has been released for the 01/13/2017 settlement date, and ...

Peek Under The Hood: FDN Has 10% Upside
Monday, January 30, 9:07 AM ET, by Market News Video Staff

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

  More articles:  1 2 3 4 5 6 7 next »

Google Takes Over #5 Spot From International Business Machines Corp.

By Market News Video Staff, Wednesday, August 29, 4:39 PM ET
Play Video: The Importance Of Market Cap

If the video does not load after a few moments, Upgrade to the Latest Flash Player.

In the latest look at the underlying components of the S&P 500 ordered by largest market capitalization, Google Inc (NASDAQ:GOOG) has taken over the #5 spot from International Business Machines Corp. (NYSE:IBM), according to The Online Investor. Click here to find out the top S&P 500 components ordered by average analyst rating

Market capitalization is an important data point for investors to keep an eye on, for various reasons. The most basic reason is that it gives a true comparison of the value attributed by the stock market to a given company's stock. Many beginning investors look at one stock trading at $10 and another trading at $20 and mistakenly think the latter company is worth twice as much that of course is a completely meaningless comparison without knowing how many shares of each company exist. But comparing market capitalization (factoring in those share counts) creates a true "apples-to-apples" comparison of the value of two stocks. In the case of Google Inc (NASDAQ:GOOG), the market cap is now $225.00 billion, versus International Business Machines Corp. (NYSE:IBM) at $222.93 billion.

Below is a chart of Google Inc versus International Business Machines Corp. plotting their respective size rank within the S&P 500 over time (GOOG plotted in blue; IBM plotted in green):

Below is a three month price history chart comparing the stock performance of GOOG vs. IBM:

GOOG,IBM Relative Performance Chart

Another reason market capitalization is important is where it places a company in terms of its size tier in relation to peers much like the way a mid-size sedan is typically compared to other mid-size sedans (and not SUV's). This can have a direct impact on which mutual funds and ETFs are willing to own the stock. For instance, a mutual fund that is focused solely on Large Cap stocks may for example only be interested in those companies sized $10 billion or larger. Another illustrative example is the S&P MidCap index which essentially takes the S&P 500 index and "tosses out" the biggest 100 companies so as to focus solely on the 400 smaller "up-and-comers" (which in the right environment can outperform their larger rivals). So a company's market cap, especially in relation to other companies, carries great importance, and for this reason we at The Online Investor find value to putting together these rankings daily.

According to the ETF Finder at ETF Channel, GOOG and IBM collectively make up 15.40% of the iShares Dow Jones U.S. Technology Sector Index Fund ETF (IYW) which is up by about 0.1% on the day Wednesday.

See what other ETFs contain both GOOG and IBM
See what other stocks are held by IYW

At the closing bell, GOOG is up about 1.6%, while IBM is up about 0.1% on the day Wednesday.

Top Six Most Viewed Stories This Week @ Market News Video:

This Article's Word Cloud:   Another   Below   Business   Corp   ETFs   GOOG   Google   International   Investor   Machines   Market   NYSE   Online   Wednesday   about   apples   billion   capitalization   companies   company   comparing   comparison   components   fillColor   find   important   index   investors   larger   market   much   mutual   ordered   other   over   plotted   reason   size   solely   stock   stocks   that   their   those   trading   true   value   versus   what   which
About Us - Advertise - Contact Us - Embedding Videos - Licensing Videos - Partners - mRSS / RSS Feed - Terms of Use - Privacy Policy - Video Widget
Home  |  Analyst News  Dividend Report  ETFs  Insider Report  Large Caps  Market Movers  Week Ahead Report  Weekly Market Wrap
MNV MNV Stock Message Boards Stock Market Definitions

Google Takes Over #5 Spot From International Business Machines Corp. | Market News Video | Copyright © 2008 - 2017, All Rights Reserved

Any ideas and opinions presented in all Market News Video clips are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.