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Google added to Dow Jones Industrial Average, replacing Verizon

Google added to Dow Jones Industrial Average, replacing Verizon

Alphabet will join the Dow before trading starts on June 29 as S&P Dow Jones Indices reshapes the benchmark to better reflect fast-growing areas of the U.S. economy.

Fact Check
Multiple sources, including CNBC's primary news account and Investing.com, confirm on the same day that Alphabet (parent of Google) was added to the DJIA replacing Verizon. A social media post adds the effective date of June 29, and an earlier Yahoo/Motley Fool article predicted the move. The claim conflates 'Google' with 'Alphabet,' but Alphabet is Google's parent company, making the substance accurate.
Summary

Alphabet will join the Dow Jones Industrial Average before trading starts on June 29, replacing Verizon in a change S&P Dow Jones Indices said will give the price-weighted benchmark better exposure to faster-growing parts of the U.S. economy. The index manager pointed to Alphabet’s scale, share price and business breadth across search, YouTube, cloud, Android, hardware, self-driving technology, healthcare projects and advertising tools as reasons it is a more representative Communication Services constituent. The change comes after a sharp selloff in Alphabet shares that wiped nearly $250 billion from its market value, with the stock closing about 6% lower on Monday in its worst session in about a year, amid broader pressure on major technology names and investor scrutiny of the company’s heavy AI spending. The reshuffle is scheduled for the same day Honeywell International plans to spin off its aerospace division; the remaining parent will stay in the Dow as Honeywell Technologies, while Honeywell Aerospace will not enter the index.

Terms & Concepts
  • price-weighted: An index structure in which stocks with higher share prices have a larger influence on index moves.
  • Communication Services constituent: A company included in the communication services sector classification within an index.
  • AI spending: Corporate investment in artificial intelligence infrastructure, models, chips, products and related services.