Amazon Inc. AMZN is set to join the Dow Jones Industrial Average (DJIA), a move that may not be as favorable for the company as it appears.
What Happened: During CNBC’s Last Call, host Brian Sullivan expressed that Amazon replacing Walgreens Boots Alliance Inc. WBA in the DJIA before the market opens on Feb. 26 might not be positive news for Amazon.
Sullivan compared Amazon with other Magnificent 7 stocks like Microsoft and Apple, who, after joining DJIA, experienced a flat stock situation for several years before spiking.
For Apple, the first two years after joining DJIA was “dead money” while Microsoft saw a flat stock for almost 15 years on the index.
“Will history repeat itself for Amazon?” Sullivan raised the question.
Why It Matters: Amazon’s shares traded higher in Tuesday's after-hours session following the announcement of its inclusion in the DJIA.
S&P Dow Jones Indices stated that Amazon’s inclusion will increase consumer retail exposure and other business areas in the DJIA, reflecting the evolving nature of the American economy.
Read Next: Bitcoin’s Bright Future: Hedge Fund Veteran Mark Yusko Foresees $150,000 Peak
Photo by Sundry Photography on Shutterstock
Engineered by Benzinga Neuro, Edited by Pooja Rajkumari
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
|---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
