Thursday , 7 November 2024
Home Business Amazon Joins Dow Jones, Walgreens Out After Stock Split
Business

Amazon Joins Dow Jones, Walgreens Out After Stock Split

Amazon Joins Dow, Walgreens Out After Split

Amazon’s ascent to the Dow Jones Industrial Average marks a significant shift in the index’s composition. The decision to replace Walgreens Boots Alliance with Amazon comes on the heels of Walmart’s 3-for-1 stock split, a move that has ramifications beyond the retail sector. Walgreens’ exit from the index after a six-year tenure is not just a reflection of its low stock price on the Dow Jones but also indicative of broader challenges facing the company.

Walgreens has been grappling with declining demand for Covid-19 vaccines and tests, leading to significant losses. In the first quarter of this year alone, the company reported an operating loss of $39 million, a stark contrast to the $6.2 billion in operating losses it reported in the same quarter a year ago. The company’s removal from the Dow Jones underscores the impact of Walmart’s stock split, which will reduce Walgreens’ index weight, a metric determined by stock price.

On the other hand, Amazon’s inclusion in the Dow Jones comes as no surprise given its status as an e-commerce giant with a market capitalization of $1.7 trillion. The company has been a major contributor to the national gross domestic product, adding $880 billion from 2010 to 2023. Amazon’s financial performance has been robust, with the company reporting $574.8 billion in revenue and $30.4 billion in net income in 2023, marking a significant improvement from the previous year.

Amazon’s stock has also been on an upward trajectory, trading at $167.08, up from $93.50 a year ago. This recovery comes after a challenging 2022, during which Amazon implemented cost-cutting measures, including layoffs that affected more than 27,000 workers over the past year and a half. Despite these challenges, Amazon’s resilience has been a testament to its adaptability and strategic vision.

In addition to Amazon’s inclusion, S&P Dow Jones Indices announced that Uber will replace JetBlue Airways on the Dow Jones. JetBlue’s removal from the index is attributed to its low share price, which has declined over the past year amid challenges related to its blocked $3.8 billion merger with Spirit Airlines. These changes underscore the dynamic nature of the Dow Jones and its ability to reflect the evolving landscape of the stock market.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

Political Leaders Speak at Nashville Bitcoin Conference
Business

Bitcoin Surges as Election Results Favor Trump

Bitcoin reached a record-breaking high on election night, spiking to nearly $74,000...

Amazon Hits
Business

Amazon Stock Soars After Beating Earnings Expectations

Amazon’s latest earnings report brought a surge of optimism for investors as...

Musk at Election 2024 Trump rally
Business

Musk’s PAC Keeps $1 Million Giveaways Amid Legal Pause

Elon Musk’s super PAC, America PAC, is set to continue its $1...

Microsoft
Business

Microsoft Faces Stock Plunge Despite Record Q3 Earnings

Microsoft Corporation, the tech giant based in Redmond, Washington, reported astonishing third-quarter...