Feb. 26 marked the second major shakeup in the Dow Jones Industrial Average in the last five years. The other was when Salesforce, Honeywell International, and Amgen replaced ExxonMobil, RTX, and Pfizer (respectively) in 2020.

Amazon (NASDAQ: AMZN) just replaced Walgreens Boots Alliance, which increased the retail representation in the Dow after Walmart (NYSE: WMT) issued a 3-for-1 stock split. The addition of Amazon was possible because the tech giant split its stock in the summer of 2022. At a price in the low $180-per-share range, Amazon will be an average-weighted stock in the Dow, similar to Apple. Walmart is now one of the least-weighted stocks in the time-tested index.

Amazon's inclusion makes it the third "Magnificent Seven" stock to join the Dow (the other two are Microsoft and Apple). It also adds more e-commerce and cloud infrastructure to the Dow as these two industries make up a growing share of the economy.

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Source Fool.com