Amazon Selected to Join Dow Jones Industrial Average (DJIA), Replacing Walgreens Boots Alliance
Amazon.com Inc has been chosen to join the prestigious Dow Jones Industrial Average (DJIA), resulting in a surge in the company’s shares. The S&P Dow Jones Indices recently announced that Amazon will replace Walgreens Boots Alliance Inc in the DJIA effective from the market opening on Feb. 26.
This decision by S&P Dow Jones Indices reflects the ever-changing landscape of the American economy. By including Amazon in the DJIA, the index will now have increased exposure to consumer retail and other sectors. The addition of Amazon is seen as a strategic move to align the DJIA with the evolving business landscape.
The change in the index was prompted by Walmart’s announcement of a 3:1 split, which will reduce its index weighting due to the price-weighted nature of the DJIA. Despite this reduction, Walmart will continue to be a part of the DJIA.
In addition to the replacement of Walgreens Boots Alliance, S&P Dow Jones Indices also announced that Uber will replace JetBlue Airways in the Dow Jones Transportation Average. This change aims to provide the index with exposure to the thriving ride-sharing industry.
Following the news, Amazon shares experienced an increase of 1.20% after hours, reaching $169.09.
This move marks a significant milestone for Amazon, solidifying its position as a major player in the global market. As the company joins the prestigious DJIA, it is expected to continue its growth trajectory and further strengthen its influence in the retail and e-commerce sectors.
(Source: Bloomberg)
Analyst comment
Positive news: Amazon has been selected to join the Dow Jones Industrial Average, replacing Walgreens Boots Alliance. This move is expected to result in a surge in Amazon’s shares and solidify its position as a major player in the global market. The addition of Amazon to the index increases its exposure to consumer retail and other sectors, aligning it with the evolving business landscape. Additionally, the announcement of Uber replacing JetBlue Airways in the Dow Jones Transportation Average provides the index with exposure to the thriving ride-sharing industry. Overall, this news is positive for Amazon and the market.
