Amazon.com promoted to S&P 500 index...

4 comments

.. and interestingly Google remains excluded. The S&P 500 index, which debuted in 1957, attempts to reflect the overall U.S. economy, with key companies from various sectors included in the bundle of stocks. A report in ecommercetimes.com says that Amazon shares rose more than 6 percent on the news to US$45.18 in early afternoon trading today. The stock will actually join the index at the close of trading on Friday.

Quote:
Some stock watchers saw the move as a surprise because rising Internet star Google (Nasdaq: GOOG) was not chosen to make its way into the index and because eBay, which is not in the list, has been a stronger performer in terms of consistent profits over time. But Amazon may be a good fit because of its high profile position in e-commerce, its expansion into new areas, such as search and Web services and support for other retailers, and because of the broad range of sales categories that it has expanded into after starting out as a books retailer.

Mind you msn says , referring I believe to the S&P 500, rather than somewhere less desirable:-

Quote:
One way or another, Google is going to eventually wind up where it belongs.

Comments

Amazon has been subjected to more scrutiny

Remember their accounting fiasco of several years ago where they had to take back about five quarters' worth of projected revenues? I think they are viewed as a more mature company than Google or eBay. They have been down to the principal's office at least once in a very public way.

Am I missing something?

I thought eBay was in the S&P 500, no?

Amazon is a very different type of business

I would argue Amazon is 99% a traditional bricks and mortar business these days. They have warehouses/support centres all over the globe and act as a supply chain for high street companies like Toys R Us and Target. Google and eBay still lack that real world security which these traditional economists probably look for. Only 6 months ago we were talking about Google as a 'one trick pony' :)

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