Amazon Replacing Walgreens In Dow Jones Industrial Might Not Be A Great Thing: 'Will History Repeat Itself?'
Portfolio Pulse from Benzinga Neuro
Amazon Inc. (NASDAQ:AMZN) is set to replace Walgreens Boots Alliance Inc. (NASDAQ:WBA) in the Dow Jones Industrial Average (DJIA), a move that CNBC's Brian Sullivan suggests might not be favorable for Amazon. Drawing parallels with Microsoft and Apple's performance post their inclusion in DJIA, Sullivan speculates whether Amazon's stock might experience a similar period of stagnation. Despite this, Amazon's shares traded higher in after-hours session following the announcement.
February 21, 2024 | 9:32 am
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NEGATIVE IMPACT
Amazon's inclusion in the DJIA might not be as favorable as it seems, with potential for stock stagnation based on historical parallels with Microsoft and Apple.
The comparison with Microsoft and Apple's performance post-DJIA inclusion suggests a potential risk of stock stagnation for Amazon. Despite the initial positive reaction in after-hours trading, historical patterns indicate a possible period of underperformance.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Walgreens Boots Alliance Inc. is being replaced by Amazon in the DJIA, which could have implications for its stock performance.
Being replaced in the DJIA by Amazon might be viewed negatively by investors, potentially impacting Walgreens' stock performance in the short term. The historical context provided for Amazon's inclusion raises questions about the implications for Walgreens.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70