Amazon\u2019s inclusion in the DJIA, a price-weighted index comprising 30 prominent stocks, is set to take effect before the market opens on February 26. Following the news, Amazon shares edged up 1% in extended trading, while Walgreens stock dipped 3%.<\/p>\n
S&P Dow Jones Indices cited Walmart\u2019s recent 3-for-1 stock split as the catalyst for the revision, resulting in a lower index weight for Walmart and prompting the need for a replacement stock.<\/p>\n
The addition of Amazon to the DJIA offers investors greater exposure to the e-commerce giant, which has evolved far beyond its origins as an online bookseller. Under the leadership of CEO Andy Jassy since 2021, Amazon has diversified its revenue streams, with its cloud computing arm, Amazon Web Services (AWS), emerging as a market leader, contributing 14% of revenue and the majority of operating profit.<\/p>\n
Jeff Bezos, Amazon\u2019s founder and former CEO, now serves as the company\u2019s executive chair. Despite stepping down from the CEO role, Bezos remains a significant figure, ranking as the world\u2019s second-wealthiest individual by some measures. In recent weeks, Bezos has sold billions of dollars\u2019 worth of Amazon stock.<\/p>\n
In addition to its core e-commerce and cloud businesses, Amazon has seen rapid growth in its advertising division, outpacing competitors like Alphabet, Meta, and Microsoft. The company\u2019s advertising revenue surged by 27% in the fourth quarter, underscoring its expanding influence in the digital advertising space.<\/p>\n
Amazon\u2019s entry into the DJIA comes three years after business software maker Salesforce joined the index, along with Amgen and Honeywell International. Meanwhile, Walgreens has been a component of the Dow since 2018, replacing General Electric, which had been part of the index since its inception in 1896.<\/p>\n
In the most recent quarter, Walgreens narrowed its losses to $278 million, excluding non-controlling interests, compared to $3.8 billion in the same period the previous year. In contrast, Amazon reported fourth-quarter earnings of $10.6 billion, reflecting its robust financial performance and market leadership in various sectors.<\/p>\n","protected":false},"excerpt":{"rendered":"
In a significant shift reflecting the evolving landscape of the American economy, Amazon is poised to replace Walgreens Boots Alliance in the Dow Jones Industrial Average (DJIA), according to an announcement from S&P Dow Jones Indices on Tuesday. The move underscores the growing dominance of online retail and tech-related businesses in the stock market.<\/p>\n","protected":false},"author":331,"featured_media":32731,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[4745,95],"class_list":["post-32825","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tech","tag-tech","tag-usa"],"reading_time":"2 min read","_links":{"self":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/32825","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/users\/331"}],"replies":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/comments?post=32825"}],"version-history":[{"count":0,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/32825\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media\/32731"}],"wp:attachment":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media?parent=32825"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/categories?post=32825"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/tags?post=32825"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}