Dow Jones Drops Verizon (VZ), Adds Near-Monopoly June 29

Alphabet Inc. (NASDAQ: GOOGL), the parent of Google and YouTube, is set to join the Dow Jones Industrial Average on June 29, replacing Verizon Communications in the index's most significant reshuffle in years — a move that reshapes one of Wall Street's most-watched benchmarks.

At a Glance

• GOOGL joins the Dow Jones Industrial Average on June 29, 2026, replacing Verizon Communications
• At $346.13, Alphabet's Class A shares will rank as the sixth most influential component in the price-weighted index
• Google commands roughly 90% of global internet search traffic, per GlobalStats
• Alphabet has returned approximately 13,700% since its August 2004 IPO
• Verizon gained only 39.5% (excluding dividends) during its 22-year Dow tenure

Why the Dow Is Swapping Verizon for Alphabet

The Dow Jones Industrial Average turned 130 in May, and in that span the index has been adjusted more than 50 times. What began in 1896 as a 12-stock basket of industrial names is now a 30-company cross-section of the U.S. economy. The committee behind those decisions, S&P Dow Jones Indices, applies two broad criteria: companies should reflect the economy's current shape, and they should be demonstrated long-term winners.

Verizon met neither test convincingly. Added to the Dow on April 8, 2004, its shares gained just 39.5% over 22 years, excluding dividends — a performance that lagged the broader market by a wide margin. Its share price, sitting at $46.73 as of late June, made it the second-cheapest stock in the index. That matters acutely here, because unlike the S&P 500 and the Nasdaq Composite — both market-cap-weighted — the Dow is weighted by share price. A low-priced stock has little influence regardless of its market cap. Based on the current Dow divisor, Verizon was responsible for fewer than 288 Dow points in an index that recently closed around 51,667.

Alphabet solves both problems at once. At $346.13 per share, GOOGL will slot in as the sixth most influential component from day one, and its long-run track record makes Verizon's look almost embarrassing by comparison.

What Alphabet Brings to the Index

Google's search engine handles roughly 90% of global internet search traffic, a position that gives Alphabet unusual pricing power in digital advertising. That near-monopoly ties Alphabet's revenue closely to the U.S. economy — precisely the quality the index committee prizes. YouTube, the second-most-visited social platform globally behind Google Search itself, adds a streaming and video-advertising dimension that Verizon never offered.

The growth story that matters most right now, though, is Google Cloud. After integrating generative AI and large language model capabilities into its cloud infrastructure platform, Google Cloud's revenue growth has reaccelerated materially. Cloud is a high-margin segment, and faster growth there moves the needle on Alphabet's overall earnings trajectory.

Alphabet joins existing trillion-dollar Dow members Nvidia, Microsoft, and Amazon, giving the index a notably heavier technology and AI weighting than it carried with Verizon in the mix.

What the Numbers Say

GOOGL closed at $346.13 on June 21, 2026, off 0.43% on the session. The stock's 52-week range runs from $295.18 to $408.61, placing it currently about 41% below its annual high — a meaningful drawdown from peak levels reached earlier in the year.

At a $4.49 trillion market cap, Alphabet is one of the largest publicly traded companies on earth. The P/E ratio of 31.73, measured against trailing EPS, prices the stock at a premium to the broader market but at a discount to many pure-play AI peers. For a company with dominant search economics, a fast-growing cloud division, and YouTube's advertising revenues, that multiple is not extreme — but it is not cheap, either.

The RSI reading of 37.25 puts GOOGL close to, though not yet in, technically oversold territory. Momentum has been negative, consistent with a stock that has pulled back roughly 15% from recent highs. Technically, the setup is one where buyers have been slow to step in, and further weakness toward the $295 support level cannot be ruled out.

The dividend yield sits at 0.25% — a token figure that signals Alphabet is still deploying capital into growth rather than returning it at scale. Income-oriented investors won't find much here; the yield is largely symbolic.

Bull Case

Inclusion in the Dow brings index-tracking demand, increased institutional visibility, and a reputational signal that the company is considered a permanent fixture of the U.S. economic landscape. More substantively, Google Cloud's reacceleration suggests that AI integration is already contributing to revenue, not just narrative. With a near-90% share of global search and YouTube's scale, Alphabet's core advertising business has durable pricing power that few competitors can approach. If the RSI continues toward oversold levels and then reverses, current prices could look attractive relative to the company's earnings power.

Bear Case

The stock has shed roughly 15% from its 52-week high of $408.61, and the RSI trend suggests selling pressure has not yet exhausted itself. Antitrust exposure is a real and ongoing risk: U.S. regulators have targeted Google's search dominance, and an adverse ruling could structurally affect its core revenue stream. Competition in AI-powered search from Microsoft's Bing (backed by OpenAI) and others represents the first credible threat to Google's search share in decades. A P/E of 31.73 leaves limited room for earnings disappointment — if cloud growth stalls or ad revenue softens, the multiple would need to compress.

Frequently Asked Questions

Why is Verizon being removed from the Dow?

Verizon's share price of $46.73 gave it minimal influence in the price-weighted Dow, and its 39.5% total price return since joining in 2004 lagged the index substantially. S&P Dow Jones Indices replaced it with a company that better reflects the current U.S. economy and has demonstrated stronger long-run performance.

Which Alphabet share class is joining the Dow?

Class A shares, trading under the ticker GOOGL on the Nasdaq, are the ones being added to the Dow Jones Industrial Average effective June 29, 2026.

How influential will Alphabet be within the Dow?

At its current price of $346.13, GOOGL will rank as the sixth most influential component in the price-weighted index, giving it meaningful sway over daily Dow point moves from day one.

Does Alphabet pay a dividend?

Yes, but the yield is minimal — 0.25% at the current price. Alphabet initiated its dividend relatively recently and the payout reflects a company that remains growth-oriented rather than income-focused.

A Changing Dow for a Changed Economy

The Dow's June 29 reshuffle captures something real about where the U.S. economy's center of gravity now sits. Telecom infrastructure gives way to search dominance, cloud computing, and AI infrastructure. Alphabet's addition doesn't just fill a vacancy — it marks the index's acknowledgment that a company controlling 90% of global search traffic, operating one of the world's largest cloud platforms, and generating the kind of returns Alphabet has since 2004 deserves a seat at the table that houses America's most iconic stocks.