Index funds usually have to buy shares in proproti

Index funds usually have to buy shares in proprotion to how that company is represented in the index. So if it has a small valuation by the market, it is going to make up a tiny percentage of that index and of course may end up due to rounding, with only one share!

Amazon is an example, where if you don't make earnings expectations by a small amount, the stock can go down, even though they are making money hand over fist! I own IBM stock since I was an employee years ago. I can't count how many times the stock went up in anticipation of earnings, then they miss earnings or revenue or upon further analysis the earnings were a result of things like currency translations, or them buying back shares, and then the stock drops! IBM can even be very volatile around earnings. Of course IBM has been a disappointment for longterm holders like me, but it is not the company that I worked for many years ago. I mostly hold my IBM stock for sentimental reasons, and it still pays an excellent dividend that I actually just automatically reinvest. It is a piece of my retirement nest egg, although not a big piece.