TECH - Dow Jones Welcomes Amazon Today But Analyst Raises Historical Caution For E-Commerce Stock: Should Investors Be Worried? | Benzinga
Amazon.com Inc (NASDAQ:AMZN) is set to replace Walgreens Boots Alliance, Inc. (NASDAQ:WBA) in the Dow Jones Industrial Average (DJIA) before Monday’s market open. This move has sparked concerns among some investors.
What Happened: Charlie Bilello, Chief Market Strategist at Creative Planning, highlighted a potential historical precedent that might not augur well with investors betting on the e-commerce giant’s stock.
Bilello shared a chart on Twitter showing that Walgreens’ stock price dropped 58% since its addition to the DJIA in June 2018, while the index itself and the company it replaced, General Electric, both gained significantly.