Amazon Joins Dow Jones Industrial Average, Replacing Walgreens Amid Index Shake-up
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The Dow Jones Industrial Average is removing Walgreens Boots Alliance and adding Amazon on Monday, February 26th. This will be the 52nd change to the index since its inception in 1896.
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Walgreens is being removed due to its low share price and poor stock performance. Amazon was added after its 20-for-1 stock split last June put it on the map as a Dow candidate.
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Amazon will add diversity and exposure to fast-growing industries like e-commerce, cloud computing, advertising, and subscription services. Its stock price will make it the 17th most influential Dow component.
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Walmart is undergoing a 3-for-1 stock split, also effective February 26th. While a purely cosmetic change, it will reduce Walmart's influence within the Dow index.
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The additions of Amazon and Walgreens exit, along with Walmart's split, will cause an adjustment to the Dow's divisor formula on February 26.