By Anita Hamilton
When FTSE Russell announces its preliminary list of companies today set to enter or leave the Russell 3000 Index, stock watchers will be keeping an eye on Amazon.
That is because some analysts are expecting the e-commerce and cloud computing company to completely move from being classified as part growth and part value to 100% value.
"We estimate to be 100% Value," Jefferies equity research team wrote about Amazon back in March, ahead of the coming shift. There is a reasonable argument for the reclassification seeing as Amazon's revenue growth has slowed in recent years.
The classification may sound like a technicality, but it matters because hundreds of ETFs and mutual funds base their allocations on the index's classifications. So a rebalancing of the index could lead to massive shifts in those funds holdings. Jefferies pegged the selling pressure for Amazon based on the expected recalculation to be around $8.6 billion.
And that in turn, could lead to some interesting stock price fluctuations for Amazon stock. As growth funds unload the stock, it remains to be seen how much demand there is from value funds.
Amazon shares were down slightly Friday ahead of the close, but the stock has risen around 16% in 2026. It's also the sixth largest publicly traded U.S. company by market cap.
The list released Friday will be just preliminary, with the final reclassification hitting in late June.
Write to Anita Hamilton at anita.hamilton@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
May 22, 2026 16:00 ET (20:00 GMT)
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