Changing places, Alphabet to replace Verizon in blue-chip Dow Jones Industrial Average

S&P Dow Jones Indices on Tuesday said Alphabet stock will replace Verizon in the blue-chip Dow Jones Industrial Average effective June 29. 

Shares of Google rose 0.3% in pre-open trading Wednesday on the news, while Verizon fell 0.55%.

First launched in May 1896, the average is one of the oldest indexes in the U.S. and seeks to track the 30 biggest companies in the country across all sectors. This is the first change to the venerable gauge since Nvidia and Sherwin-Williams replaced Intel and Dow, respectively, in November 2024.

“Verizon represents only one-half of one percentage point of the DJIA due to its lower share price. The Dow Jones Industrial Average is a price weighted index, and thus persistently lower-priced stocks have an immaterial impact on the index,” S&P Dow Jones Indices said in a statement.

“Alphabet’s diversified technology and digital services portfolio spans advertising, cloud infrastructure, artificial intelligence, hardware, autonomous mobility, healthcare technology, and media distribution,” the index provider noted.

“Adding Alphabet will broaden and strengthen the DJIA’s exposure to these dynamic areas of the U.S. economy. Its larger market capitalization and share price, together with the breadth of its businesses, make it a more representative Communication Services constituent in the DJIA,” it added.

According to CompaniesMarketcap.com, Alphabet’s market capitalization last stood at $4.22 trillion, significantly dwarfing Verizon’s $195.12 billion.