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The Dow Jones Industrial Average Will Change Forever on June 29, With Verizon Getting the Boot and a Virtual Monopoly Joining the Index
The Motley Fool • • business
Key Points:
- The Dow Jones Industrial Average, celebrating its 130th anniversary, will undergo a significant change on June 29 as Verizon Communications is removed and Alphabet's Class A shares are added to the index.
- Verizon's low share price ($46.73) and modest 39.5% share gain since 2004 made it less influential and a weaker representative of the U.S. economy within the price-weighted Dow.
- Alphabet, a virtual monopoly in internet search with about 90% global market share and a strong presence in AI-driven cloud services, will replace Verizon, boosting the Dow's tech representation.
- Alphabet's Class A shares, priced at $346.13, will become the sixth most influential component in the Dow, reflecting its substantial growth of nearly 13,700% since its IPO in 2004.
- This change aligns the Dow with other trillion-dollar companies like Nvidia, Microsoft, and Amazon, marking a pivotal update to the index's composition.
