Its stock rose 3.7% to $350.24, contributing one of the largest boosts to the 30-member Dow.
The transition from Verizon to Alphabet was confirmed by S&P Dow Jones Indices in an announcement on June 23.
As a stock with a higher price, Alphabet holds more influence in the price-weighted index compared to Verizon, a lesser significant member, thereby enhancing the Dow’s representation in digital advertising, cloud computing, and AI.
This addition increases the count of ‘Magnificent Seven’ members in the Dow to five, joining Nvidia, Amazon, Apple, and Microsoft.
The last reshuffle in November 2024 included Nvidia and Sherwin-Williams, swapping out Intel and Dow Inc.
Index funds that track the Dow will need to acquire Alphabet to reflect this change; however, the demand is expected to be limited: as of December 31, 2024, the Dow had around $115 billion in indexed and benchmarked assets, in contrast to about $20 trillion for the S&P 500, where Alphabet is already included, according to S&P Dow Jones Indices.
As of the last closing, Alphabet shares have risen approximately 11% this year, making it one of the standout performers within the Magnificent Seven group of tech giants.
The 130-year-old Dow continues to serve as one of the most referenced indicators of U.S. market sentiment. Verizon shares saw a decline of 7.8% to $42.03 amidst a broad downturn in telecom stocks following Comcast’s announcement to split into two publicly traded firms through a spinoff of NBCUniversal and Sky.
