Updated
Updated · CNBC · Jun 23
Alphabet Replaces Verizon in 30-Stock Dow as S&P Boosts AI Exposure
Updated
Updated · CNBC · Jun 23

Alphabet Replaces Verizon in 30-Stock Dow as S&P Boosts AI Exposure

3 articles · Updated · CNBC · Jun 23

Summary

  • Alphabet’s Class A shares will join the Dow Jones Industrial Average before Monday trading, replacing Verizon in the 30-stock benchmark, S&P Global said Tuesday.
  • S&P said the change increases the index’s exposure to artificial intelligence, cloud infrastructure and advertising, while Verizon accounted for only about 0.5% of the Dow because of its low share price.
  • Honeywell will stay in the Dow after spinning off Honeywell Aerospace, but the newly separated aerospace company will not enter the index.
  • Alphabet’s addition comes after it raised $141 billion in debt and equity since October to fund AI, even as the stock just logged its worst day in more than a year after lagging other megacap tech names.

Insights

With AI spending pressuring big tech, will Alphabet's Dow inclusion add more risk than reward for investors?
By adding Alphabet, is the Dow Jones abandoning its industrial roots to chase megacap tech growth?
What is the unspoken environmental cost of the tech giants' AI infrastructure arms race?