TECH - Amazon To Join Dow Jones Industrial Average: Does Venerable Index Membership Still Matter? | Benzinga
Amazon Inc (NASDAQ:AMZN) is set to join the Dow Jones Industrial Average (DJIA) on Monday, Feb. 26.
The Seattle-based e-commerce giant is replacing pharmacy company Walgreens Boots Alliance Inc (NASDAQ:WBA). In recent years, Walgreens has seen its shares plummet 28.4% in 2022; 30.1% in 2023; and 14.6% in 2024.
Amazon stock tumbled 51% in 2022 but came roaring back more than 100% since the beginning of 2023. Now it’s on deck to join DJIA — the so-called “venerable index.”
As one of Wall Street’s oldest stock indicators, the DJIA doesn’t get shaken up often. The last member to join was Walgreens in 2018 when it replaced General Electric, which enjoyed a 111-year tenure. Still, membership carries a certain prestige. Or does it?
“I remember when this would have mattered,” Scott Nations, founder of Nations Indexes, said on social media following the announcement.
I remember when this would have mattered. — Scott Nations (@ScottNations) February 20, 2024
Amazon Is Joining the Dow Jones Industrial Average https://t.co/5aZkfbCCDI
So, does membership of this elite club still matter?
To be selected, companies have to meet certain criteria in terms of financial health and stability, liquidity, industry leadership and relevance to the economy, among ...