The Amazon logo is visible at the company’s logistics center in Lovin-Planck in northern France.
Pascal Rossignol | Reuters
Mega-capital technology stocks are lowering their mega-stock prices with huge stock splits.
Alphabet first appeared back in February with a 20-share split of 1. Then, on Wednesday, Amazon took its step by splitting the shares 20-by-1.
Amazon’s stock price would close today at $ 139.28 adjusted for the split. As with Alphabet, falling Amazon shares are making e-commerce giant shares more enjoyable as a price-weighted component of Dow Industrials. At a split price, Amazon will rank 12th in the lowest weight among 30 stocks, putting it right in the middle of the pack – ironically, identical to the weight of Walmart. But unlike Walmart, which is a stock of Consumer Staples, Amazon is in the Consumer Discretionary sector.
Perhaps the Dow Index Committee may consider extracting Walgreens from the index if that company overestimates its Boots division. And although Walgreens is a stock of Consumer Staples, replacing it with Amazon will still give the consumer a good performance. Walgreens is the 2nd least influential stock in the price-weighted index at $ 48.
Aside from Alphabet and Amazon, Nvidia can also wait in their wings. The chipmaker split its shares 4 to 1 back in July, and its price is now $ 230. If added to the index, Nvidia will have the 6th largest weight in the Dow – much more than the least impact of Dow shares, a rival of Intel’s competitor, which sits for less than $ 48.
Other technologies that may remain vulnerable include Cisco, the 4th least influential stock in the index, and IBM, which has the 8th lowest weight and has now completed the nomination of its Kyndryl managed infrastructure division.
The last major technology company to join the Dow was Apple, which was added in March 2015 – just nine months after the completion of the 7-to-1 division, the fourth division in its history. (Because in 2020 he completed another split 4 to 1.)
Now this is for you, the Dow …