Amazon.com Inc (AMZN)

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Now we know why: Amazon Is Joining the Dow Jones Industrial Average
By: Barron's | February 20, 2024

Amazon.com will join the Dow Jones Industrial Average before the start of trading on Feb. 26, replacing Walgreens Boots Alliance in the first change in the 30-stock index since 2020.

In another change, Uber Technologies will replace JetBlue Airways in the Dow Jones Transportation Average on Feb. 26.

Amazon's entry into the Dow Jones Industrial Average was enabled by a 20-for-one stock split in 2022 that made its stock price sufficiently low for it to be included in the price-weighted index.

There has been speculation since the Amazon split that it would join the Dow industrials. The news came in a press release late Tuesday from S&P Dow Jones Indices, which oversees the Dow industrials.

Walgreens' exit isn't a surprise given the sharp drop in its stock price in recent years. That left it with little influence in the Dow industrials and the lowest market value by a wide margin — the company's market capitalization is under $20 billion.

Amazon shares are up 1.4% in after-hours trading to $169.44 after losing 1.4% in regular trading. Walgreens shares are off 3.2% in after-hours trading to $21.60 after gaining 1.5% in regular trading Tuesday.

There isn't a lot of index money tied to the Dow industrials, which has more popular recognition than interest from institutional investors.

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