Alphabet to Replace Verizon in Dow; Shares Rise 1.8%

Alphabet shares rose 1.8% Wednesday after S&P Dow Jones Indices announced the company will replace Verizon Communications in the Dow Jones Industrial Average ahead of trading on June 29.

The change increases the index’s exposure to large-cap technology. Alphabet trades around $350 per share, compared with Verizon about $47, giving Alphabet far greater influence in the Dow’s price-weighted structure. Based on the most recent closing prices, Alphabet is expected to represent about 4.0% of the index and become its seventh-largest component.

In a release, S&P Dow Jones Indices described Alphabet’s business as spanning advertising, cloud infrastructure, artificial intelligence, hardware, autonomous mobility, healthcare technology and media distribution. The index provider added that adding Alphabet will “broaden and strengthen the DJIA’s exposure to these dynamic areas of the US economy.” Both Alphabet and Verizon are classified as communications stocks for index purposes.

The change coincides with other index adjustments. Honeywell Aerospace will replace Conagra Brands in the S&P 500 on the same June 29 date. Nvidia and Sherwin-Williams were added to the Dow in November 2024, replacing Dow Inc. and Intel. After the latest change, most major technology firms including Alphabet, Microsoft, Apple, Amazon.com and Nvidia will be represented in the Dow. Honeywell International will remain in the Dow following a planned aerospace spinoff.

Because the Dow is price-weighted and not tracked as widely by index funds as the S&P 500, index reconstitutions typically do not force large-scale buying or selling. Market data from previous inclusions show muted reactions: when Nvidia and Amazon joined the Dow in 2024, both stocks moved little on their inclusion days.

Historical patterns show index additions to the Dow have not typically generated sustained share price gains. Alphabet’s stock has fallen about 11% over the past month amid investor questions about its artificial intelligence strategy and high levels of spending.