TLDR
- Alphabet (GOOGL) rose 3.7% to $350.24 on its first day trading as a Dow Jones Industrial Average member, replacing Verizon Communications.
- S&P Dow Jones Indices announced the change on June 23; Alphabet is now among the most influential Dow components due to its high stock price.
- Alphabet joins Nvidia, Amazon, Apple, and Microsoft as the five Magnificent Seven stocks now in the Dow.
- Google reportedly capped Meta Platforms’ use of its Gemini AI models due to extremely high demand for computing capacity.
- Alphabet’s cloud revenue grew 63% in Q1 2026 — its fastest growth since 2019 — and one analyst forecasts cloud revenue reaching $480 billion by 2031.
Alphabet (GOOGL) officially joined the Dow Jones Industrial Average on Monday, and the market took notice. The stock climbed 3.7% to $350.24, its first session as a Dow member.
The change was announced by S&P Dow Jones Indices on June 23. Alphabet takes the spot previously held by Verizon Communications, which was one of the least influential members of the 30-stock index.
Because the Dow is price-weighted, Alphabet immediately becomes one of its most influential components. Its higher stock price gives it more weight than Verizon ever had.
The move brings the Magnificent Seven count in the Dow to five. Alphabet now sits alongside Nvidia, Amazon, Apple, and Microsoft in the index.
The most recent prior reshuffle was in November 2024, when Nvidia and Sherwin-Williams replaced Intel and Dow Inc.
Index funds tracking the Dow must now buy GOOGL to reflect the new composition. The Dow had around $115 billion in assets indexed and benchmarked to it as of December 31, 2024 — a fraction of the roughly $20 trillion tracking the S&P 500, where Alphabet already holds membership.
That means forced buying pressure from the index change is relatively limited compared to an S&P 500 addition.
Mag Seven Bounce and Gemini Demand
Monday’s gains weren’t just about the index inclusion. The broader Magnificent Seven group rebounded strongly. Meta, Amazon, and Tesla each rose more than 3%. Nvidia and Microsoft gained more than 1%. Apple was the laggard, up just 0.1%.
The Roundhill Magnificent Seven ETF had fallen 13% in June through Friday — on pace for its worst month since launch in April 2023. Monday offered some relief.
There was also a separate news item adding fuel to Alphabet’s move. The Financial Times reported that Google has been limiting Meta Platforms’ use of its Gemini AI models, along with some smaller clients, due to surging demand for computing capacity.
Google and Meta did not immediately respond to requests for comment.
Cloud Growth Backs the AI Story
While capping clients might sound like lost revenue, it points to just how strong demand is for Google’s AI infrastructure right now.
Alphabet’s cloud division posted 63% revenue growth in Q1 2026 — its strongest since the company began disclosing the figure in 2019.
TD Cowen analyst John Blackledge forecasts cloud revenue will grow at a 37% compound annual rate, rising from roughly $100 billion this year to $480 billion by 2031.
Alphabet stock has gained about 11% year-to-date through last Friday, putting it among the top performers in the Magnificent Seven group this year.
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