According to CNBC, S&P Global announced on June 23 that Alphabet's Class A shares will be included in the Dow starting on June 29.
Alphabet will take Verizon's place in the 30-stock index. Following the announcement, Alphabet's stock rose by about 1% in after-hours trading.
S&P Global stated, "The inclusion of Alphabet will enhance the Dow's exposure to key growth areas such as AI, cloud infrastructure, and advertising."
With this addition, Alphabet joins other tech giants like Nvidia, Amazon, Apple, and Microsoft in the Dow.
Recently, Alphabet has been making aggressive investments to strengthen its AI capabilities. Since October of last year, the company has secured $141 billion (approximately 216 trillion won) through debt and capital financing. It aims to prove the profitability of its vertical integration strategy that combines its own semiconductors, cloud services, and AI models.
However, Alphabet's stock performance has been unstable. On June 22, its shares experienced their largest drop in over a year, underperforming compared to the Nasdaq index and other major tech stocks. Despite this, Alphabet's Class A shares have risen more than 10% this year.
Verizon's removal from the index is also influenced by the Dow's calculation method. The Dow is a price-weighted index, meaning it determines weight based on stock prices rather than market capitalization. Stocks with lower prices have less impact on the index, regardless of the company's size.
S&P Global noted, "Verizon's low stock price meant it accounted for only about 0.5% of the Dow."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.