Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) shares are rising in extended trading Tuesday as the company is set to join the Dow Jones Industrial Average.
- Alphabet stock is trading near recent highs. What should traders watch with GOOG?
Alphabet To Join Dow Jones
Google parent Alphabet has been selected to replace Verizon in the Dow Jones Industrial Average, effective prior to the market open on June 29.
S&P Dow Jones Indices said adding Alphabet to the index will help broaden exposure to dynamic areas of the U.S. economy, including advertising, cloud infrastructure, artificial intelligence, hardware, autonomous mobility, health care technology and media distribution.
“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,” S&P Dow Jones Indices said.
The Dow Jones Industrial Average is price-weighted, so lower-priced stocks carry less influence over its moves. Verizon currently accounts for just half a percentage point of the index because of its modest share price.
GOOG Shares Move Higher After Hours
GOOG Price Action: Alphabet stock was up 1.10% in after-hours, trading at $349.89 at the time of publication on Tuesday, according to Benzinga Pro.
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