New York, June 24, 2026, 17:37 (EDT)
- GOOGL reversed after rising as much as 2.1% and ended the session down 0.24%.
- The stock is set to take up a 4% weight in the Dow, roughly eight times bigger than Verizon’s (NYSE:VZ) share.
- DIA numbers point to a $1.75 billion Alphabet stake, with $1.53 billion trimmed from other holdings if no new money comes in.
Alphabet closed Wednesday at $345.29, off 0.24%. The stock hit an intraday high of $353.43. The Dow added roughly 0.4%. S&P 500 slipped 0.1%. Nasdaq dropped 0.4%.
Alphabet’s Class A shares are set to replace Verizon in the Dow before the open on Monday, June 29. Barron’s puts Alphabet’s projected weight at 4%, enough to rank it seventh in the index. Verizon now holds a 0.5% share in the price-weighted Dow.
The SPDR Dow Jones Industrial Average ETF Trust (NYSEARCA:DIA) reported $43.65 billion in assets as of Tuesday. A 4% weighting would put the Alphabet stake at around $1.75 billion, or about 5.1 million shares at Wednesday’s close. That’s about 11% of Alphabet’s Wednesday trading volume. DIA’s 0.5% holding in Verizon comes out to about $218 million, meaning about $1.53 billion would likely have to be shifted from other Dow names, assuming no new money into the ETF. On this pro forma setup, communication services jumps to 5.3% of assets from 1.79%.
The move means more for current Dow names than for Alphabet. The estimated DIA buy is only 0.04% of Alphabet’s $4.18 trillion market cap. But a 1% swing in Alphabet would hit the index about eight times harder than the same move in Verizon.
Big tech names slipped and dragged on the wider market, even as indexes started higher. “Investors like the recipients of the spend and have been punishing those doing the spending,” said Michael Monaghan, partner and portfolio manager at Founder ETFs. Reuters
Alphabet slipped 1% on Tuesday, dragged down with other megacap and semiconductor stocks as investors worried about AI-related debt. “It raises questions about all the spending that’s being done,” said Thomas Martin, a senior portfolio manager at Globalt, referring to recent AI news. Reuters
Alphabet is facing more headwinds with key staff leaving. Axios said Tuesday that Google DeepMind saw two top researchers exit, part of a string of senior departures from several AI labs last week.
Alphabet now expects to spend $180 billion to $190 billion on capital in 2026, up from earlier forecasts. CEO Sundar Pichai said on the Q1 call: “Our Enterprise AI solutions have become our primary growth driver for Cloud for the first time.” Alphabet Investor Relations
