The debate about whether Amazon is in the Technology Sector or the Consumer Discretionary sector is really a pointless one. It isn’t anyone’s opinion that Amazon is in the Consumer Discretionary Sector. Amazon IS in the Consumer Discretionary sector. In fact, it represents close to 11% of the S&P Consumer Discretionary Sector Index. Amazon could double tomorrow or go to zero and it will have no impact on the Technology sector. Do you know why? Because it’s not in the technology sector. It’s in Consumer Disctretionaries.
Anyway, the point is that Amazon has been carrying Discretionaries because of its enormous weighting. But take a look at what the Discretionary space looks like if you take this market-cap weighting out of the equation:
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