Amazon becomes a blue chip. From Monday 26 February the e-commerce giant's stock will become part of the Dow Jones Industrial Average. After the announcement by the S&P Dow Jones Indices, Amazon shares rose by 0,4% to $167,73 per share
Amazon becomes a blue chip
From next Monday Amazon will take over from Walgreens Boots Alliance (-3,68%) in the Dow Jones Industrial Average.
The basis of the change, as announced by S&P Dow Jones Indices which manages the benchmark index made up of 30 securities, is Walmart's decision to do a 3-for-1 split, in turn operational starting next week, to rebalance the index and adapt it to the evolution of the US economy. Unlike the S&P 500 and Nasdaq Composite, the weight on the blue-chip index is given by stock price and not by market capitalization. Thus, the stock split will reduce the weight of Walmart and that of the consumer staples sector in the index. “Reflecting the evolving nature of the American economy, this change consumer retail exposure will increase” in the index, explains S&P Dow Jones.
Walgreens farewell to Dow Jones
Walgreens it entered the Dow Jones less than six years ago, in June 2018, replacing General Electric, which was the last company among the 30 that had been part of it since the beginning. Since then, he has lost more than two-thirds of its value and was the index's worst stock in 2019 and 2023.
In contrast, Amazon's stock has been among the best performers on the U.S. stock market and its own value has almost doubled since the beginning of 2023, raising its capitalization to over 1.700 billion dollars. Finally, it should be taken into consideration that the Dow Jones also includes other giants such as Apple and Walt Disney.
Uber enters the Dow Jones Transportation Average
Uber will replace JetBlue Airways in Dow Jones Transportation Average (DJTA), a change that will help the index gain exposure to the ride sharing sector, explains S&P Dow Jones.
