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Amazon stock split sets up for being into the Dow Industrial

Mega cap Amazon is trying to shed its mega share prices with stock splits. Alphabet first announced a 20-for-1 stock split in February. Amazon stocks will split into 20-for-one.

Amazon Stocks would have closed today at a split-adjusted price of $139.28. Amazon’s stock split makes the e-commerce giant’s shares more appealing. It is as per the component of the price-weighted Dow Industrials.

Amazon stock weigh 12th-smallest weighing among the 30 stocks at the split-adjusted pricing. It is putting the right in the middle of the pack – an identical weighting to Walmart. Amazon is in the Consumer Discretionary sector. It is going to oppose Walmart. This is the Consumer Staples sector.

The Dow index committee may consider removing it from the index. The Walgreens reassesses its Boots unit. Walgreens is a Consumer Staples stock. It will be replacing it with Amazon. This would still provide a solid representation of consumer retail.

Walgreens is the second-least influential stock in the price-weighted index. It also has a market capitalization of $48 billion.

Nvidia is lurking in the shadows in comparison with Amazon stock. The chipmaker’s stock divided 4-for-1 in July. And, its current price is $230. If it were to include in the Dow, Nvidia would have the sixth-largest weighing. It is more than Dow’s least influential company. Intel is currently trading under $48.

Other technology companies are also under the same phase. They are vulnerable, including Cisco. The index’s fourth-least influential company. IBM also has the index’s eighth-smallest weighting. And, it has recently completed the spin-off. It has a Kyndryl-managed infrastructure unit.

Apple is the most recent major tech company to enter the Dow. Apple joined Dow in March 2015. It is nine months after executing its fourth 7-for-1 split. It has also undertaken another 4-for-1 split. It got completed in 2020.

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