Overview
- Alphabet was added to the Dow Jones Industrial Average on June 29, replacing Verizon Communications and closing that day at $354 per share.
- The stock has risen about 300% since January 2023 as Alphabet folded generative AI into search, advertising and cloud products, easing earlier investor concerns about disruption.
- S&P Global said it adds stocks that have strong reputations, sustained growth and wide investor interest, which guided the decision to include Alphabet.
- Because the Dow is weighted by share price rather than company size and far fewer funds track the Dow, inclusion usually forces less index-driven buying than joining the S&P 500 or Nasdaq and so tends to produce smaller price bumps.
- History shows 16 companies added to the Dow over the last 15 years averaged roughly 7% gains in the year after inclusion versus about 20% for the S&P 500, a pattern analysts use to project modest upside for Alphabet to roughly $378 by July 2027 if past trends hold.