Google's parent company Alphabet will join the Dow Jones Industrial Average (DJIA) on June 29, replacing Verizon Communications in the 30-stock Dow index.
This change means the Dow will have more exposure to technology and digital businesses, as Alphabet works in online advertising, cloud computing, artificial intelligence (AI), hardware, self-driving cars, and healthcare technology.
Alphabet's Class A shares will be added to the Dow, but its Class C shares (ticker: GOOG) will not be included.
Verizon has been part of the Dow since 1984 but is now being removed from the index, continuing a trend of older telecom companies leaving the Dow in favor of technology companies.
The Dow is a price-weighted index, meaning companies with higher share prices have a bigger impact on the index than companies with lower-priced shares.
Experts say joining the Dow is mostly a symbolic achievement rather than something that greatly changes Alphabet's business.
