The stock is down around 6.3% since the split was announced on March 9, compared to a 6.1% decline for the tech benchmark Nasdaq.
Curiously, Amazon — as well as its peers — have targeted broader investor access as part of the motive behind the split, just as retail investors are starting to pull away from beaten-down stock markets.
Earlier this month, Goldman Sachs analyst David Kostin noted that around $26 billion has flowed out of U.S. equity mutual funds and exchange traded funds over the previous seven weeks, and theorized that retail investors had, in effect, sold all of the stocks they had bought over the past two years.
That said, Amazon’s split still leaves it open to inclusion in the Dow Jones Industrial Average, a price-weighted index that is designed to smooth-out the vagaries of splits and dividends in its 30 stock collection. It does this through the Dow divisor, a number that represents the affect of a stock price change on the overall average.
S&P Dow Jones Indices classifies Amazon as a consumer discretionary stock, while Google is considered communications services, but both would have a strong case for Dow inclusion given their industry dominance and planet-like influence on broader financial markets.
But who would could Amazon replace?
ម៉ាស៊ីនអាជីវកម្មអន្តរជាតិ (ក្រុមហ៊ុន IBM ទទួលបានរបាយការណ៍សាជីវកម្មម៉ាស៊ីនពាណិជ្ជកម្មអន្តរជាតិ seems the most likely target, with a market cap of just $127 billion and stock that’s fallen nearly 5% of the past five years. Intel Corp. (INTC ទទួលបានរបាយការណ៍សាជីវកម្ម Intel , at $177 billion, could also be a swap, as could Cisco Systems (ស៊ីអេសអេស ទទួលបានរបាយការណ៍ Cisco Systems, Inc , which has a market value of around $187 billion.
The move to swap out one of the tech old-guards is not without precedent: Apple knocked AT&T (T ទទួលបានរបាយការណ៍ AT&T Inc from its Dow perch in March of 2015, less than a year after the iPhone maker (now the biggest company in the world) unveiled a 7-for-1 stock split in June of 2014.
S&P Dow Jones Indices is not above turfing big-name stocks from its bellwether, either: Pfizer (ភីអេហ្វអេស ទទួលបានរបាយការណ៍របស់ Pfizer Inc got the boot in the summer of 2020, alongside Exxon Mobil (XOM ទទួលបានរបាយការណ៍សាជីវកម្ម Exxon Mobil and Raytheon (ផ្នែកបន្ថែម RTX Get Raytheon Technologies Corporation Report , to make way for Amgen (អេអឹមជីអិន Get Amgen Inc. Report , Salesforce (CRM ទទួលបានរបាយការណ៍ Salesforce, Inc and Honeywell (អូ៎ ទទួលបានរបាយការណ៍ Honeywell International Inc .
