Alphabet 'more representative' as a communication services component, index provider says
Google-parent Alphabet is going to replace Verizon in the Dow Jones Industrial Average
Alphabet will replace Verizon Communications in the Dow Jones Industrial Average, index provider S&P Indices said late Tuesday.
S&P Indices hailed the Google parent's (GOOG) (GOOGL) diversified technology portfolio, and said that adding the company to the premier U.S. equity benchmark "will broaden and strengthen" the Dow's DJIA exposure to "dynamic" sectors of the U.S. economy.
"Its larger market capitalization and share price, together with the breadth of its businesses, make it a more representative communication services constituent in the DJIA," the provider said.
The changes are effective before the open on Monday, June 29. Shares of Alphabet rose 1% in the extended session Tuesday, after ending the regular trading day down 1%. Verizon's (VZ) stock dropped less than 1% after hours, after closing 3% higher in the regular session.
Tuesday's changes come two years after Nvidia (NVDA) joined the Dow.
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