Amazon's Dow Inclusion: Will It Mirror Apple, Microsoft, Intel With A Stock Anchor Or Signal An Upward Spike?
Portfolio Pulse from Surbhi Jain
Amazon.com Inc (NASDAQ:AMZN) is set to join the Dow Jones Industrial Average on Feb. 26, causing its stock to trade higher. Historical examples like Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), and Intel (NASDAQ:INTC) show that joining the DJIA might lead to initial stagnant stock performance before significant growth. However, Amazon's current technical setup suggests a favorable outlook, with indicators like the 50-day and 200-day SMAs supporting a 'Buy' signal. Investors are advised to be cautious due to the mixed historical performance of tech stocks upon Dow inclusion.
February 21, 2024 | 6:31 pm
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NEGATIVE IMPACT
Apple's stock performance was initially stagnant after its Dow inclusion in 2015, but it later experienced significant growth.
Apple's entry into the Dow Jones Industrial Average in 2015 led to initial stock performance stagnation, similar to Microsoft, which may indicate a pattern for tech stocks like Amazon.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Intel faced a similar trajectory to Microsoft and Apple upon its Dow inclusion in 1999, with initial stagnation followed by growth.
Intel's stock trajectory after joining the Dow in 1999 shows initial stagnation, aligning with the experiences of Microsoft and Apple, and suggesting a cautious outlook for Amazon.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Microsoft experienced stagnant stock performance after joining the Dow in 1999, but eventually saw significant growth.
Microsoft's historical performance after joining the Dow Jones Industrial Average in 1999 shows initial stagnation followed by growth, which may serve as a precedent for Amazon.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Amazon's inclusion in the Dow Jones Industrial Average is expected to initially boost its stock, supported by a strong technical setup indicating a 'Buy'. However, historical patterns suggest potential for initial stagnation.
Amazon's stock is trading higher due to its upcoming Dow inclusion, with technical analysis supporting a positive outlook. However, the historical performance of other tech stocks upon joining the Dow suggests caution.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100