Alphabet Joins Dow Jones Industrial Average, Replacing Verizon
Alphabet becomes the Dow’s sixth-biggest weight at about 4% as the index adds more AI-driven tech and drops Verizon.
- On Monday, Alphabet GOOGL-Q officially joined the Dow Jones Industrial Average, replacing Verizon Communications VZ-N, with shares rising 3.7 per cent to US$350.24.
- Because the Dow weights by share price rather than market capitalization, Alphabet's US$345.29 share price makes it the sixth most influential member, whereas Verizon Communications accounted for just 0.5% of the index's weighting.
- This change broadens the Dow's exposure to digital advertising, cloud computing, and AI, as Google Cloud infrastructure services delivered 63% sales growth in the first quarter.
- Footwear giant Nike's 13-year tenure in the Dow may soon end, as the index committee put the company on notice with its share price falling below $42 on June 24.
- Alphabet's inclusion is primarily symbolic, as the company is already in the S&P 500; consequently, forced buying from index funds tracking the Dow is expected to be modest.
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The Dow Jones close above 52 thousand points for the first time, after Alphabet's debut in the index that rose almost 5%.
Alphabet's shares go up on Monday (20), with Google's controller's debut in the Dow Jones Industrial Average index, replacing Verizon Communications, and the company immediately became one of its most influential members. The shares went up 3.7% recently, to $350.24, representing one of the biggest impulses for the Dow index, composed of 30 companies. The company replaced Verizon in the index, informed S&P Dow Jones Indices in a statement on Jun…
Alphabet stock is finally joining the Dow. What took so long?
Michael Nagle/Bloomberg via Getty ImagesBelieve it or not, today is Alphabet's first day in the Dow index, replacing Verizon.The company's addition signifies the market's shift towards AI-driven tech.Detailed below is everything else you need to know about why the move matters.Tech giant Alphabet joins the Dow Jones Industrial Average today, taking the spot previously occupied by Verizon.I know what you're probably wondering: How the heck is Alp…
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