Posted 2/21/2024, 5:04:15 PM
Amazon Replaces Walgreens in Dow Jones in Historic Shakeup Reflecting Tech Dominance
- Amazon will replace Walgreens in the Dow Jones Industrial Average on Feb. 26th to help the index stay relevant and reflect higher end markets
- Amazon adds exposure to areas like cloud computing, AI, healthcare, and e-commerce that far exceeds Walgreens' reach
- Unlike the S&P 500, the Dow doesn't reshuffle components frequently - only 60 changes in its 120-year history
- Walgreens shares have dropped 70% in 5 years while Amazon is up over 100%, prompting the change
- The addition of Amazon, joining Apple and Microsoft, gives the Dow more exposure to the "Magnificent Seven" tech stocks driving the S&P 500's gains