Amazon Inc. (NASDAQ:AMZN) is gearing up to join the Dow Jones Industrial Average (DJIA), a move that may not be all sunshine and rainbows for the e-commerce giant.
During CNBC’s Last Call, host Brian Sullivan pointed out that Amazon replacing Walgreens Boots Alliance Inc. (NASDAQ:WBA) in the DJIA before the market opens on Feb. 26 might not necessarily be a positive development for Amazon.
Sullivan drew comparisons to other tech giants like Microsoft and Apple, who saw stagnant stock performance for several years after joining the DJIA before eventually taking off.
For Apple, the first two years on the index were lackluster, while Microsoft experienced a flat stock for nearly 15 years.
“Will history repeat itself for Amazon?” Sullivan pondered.
In a tweet from Last Call, it was highlighted that Amazon’s inclusion in the DJIA may not bode well for the company based on historical trends.
Amazon’s shares saw an uptick in after-hours trading following the news of its inclusion in the DJIA. S&P Dow Jones Indices noted that Amazon’s addition will enhance consumer retail exposure and other business sectors in the index, reflecting the changing landscape of the American economy.
The move to join the DJIA may not be as straightforward as it seems for Amazon, but only time will tell how this decision plays out for the e-commerce giant.
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