Alphabet’s $350 Stock Joins Dow, Alters Tech Weightings Including Microsoft
MSFT•Alphabet’s $350 share price has replaced Verizon’s $31 in the Dow Jones Industrial Average, joining four other tech giants including Microsoft. Index funds tracking the Dow’s approximately $115 billion in assets must now purchase Alphabet shares, shifting weightings among Magnificent Seven stocks such as Microsoft.
1. Dow Composition Change
On June 23 the Dow committee announced that Alphabet’s $350 per share price replaces Verizon’s roughly $31 in the 30-stock index, expanding exposure to digital advertising, cloud computing and AI sectors. This marks the first Dow reshuffle since November 2024 and brings Alphabet alongside Microsoft, Nvidia, Amazon and Apple.
2. Implications for Microsoft
With Alphabet’s higher share price in a price-weighted index, Microsoft’s relative weight will decline slightly as funds rebalance holdings. Index funds tracking about $115 billion in Dow assets must allocate to Alphabet, potentially diverting inflows from Microsoft and other existing components.
