GOOGL Stock Gains After-Hours As Alphabet Is Set To Replace Verizon In Dow Jones — Retail Eyes ‘$400’ Level

• Alphabet will replace Verizon in the Dow Jones Industrial Average effective before the June 29 market open.
• Alphabet’s inclusion expands DJIA exposure to AI, cloud, advertising and digital services, according to S&P Global.
• Honeywell will remain in the index under a new name after spinning off its aerospace unit, which will not be included.

Shares of Alphabet Inc. (GOOGL) saw modest gains in after-hours trading on Tuesday, while Verizon Communications Inc. (VZ) stock declined after ending the regular session higher.

The stock movements happened after S&P Dow Jones Indices said that Alphabet would replace Verizon Communications in the Dow Jones Industrial Average (DJIA) effective before the opening of trading on June 29.

At the time of writing, GOOGL stock was up 1.1% in after-hours trading, while VZ was 0.45% down.

GOOGL To Broaden DJIA Exposure

Alphabet’s diversified technology and digital services portfolio spans advertising, cloud infrastructure, artificial intelligence, hardware, autonomous mobility, healthcare technology, and media distribution. Adding Alphabet will broaden and strengthen the DJIA’s exposure to these dynamic areas of the U.S. economy, according to S&P Dow Jones Indices. 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.

Honeywell Aerospace Spin-Off

Honeywell International Inc (HON) will remain in the Dow Jones Industrial Average under its new name, Honeywell Technologies, following the completion of its spin-off of Honeywell Aerospace (HONA), S&P Dow Jones Indices said. The spun-off entity will not be included in the index, according to the firm.

Verizon represents only one-half of one percentage point of the DJIA due to its lower share price. The DJIA is a price-weighted index, and as a result, persistently lower-priced stocks have an immaterial impact on the index.

GOOGL Stock: What Retail Traders Feel

On Stocktwits, retail sentiment for GOOGL was ‘bullish’ and unchanged over the past 24 hours, while message volume was ‘high.’ Over the past 30 days, message volume around the stock has surged more than 950%, while its retail watcher base rose 0.7% during the same period.

Retail traders reacted positively to Alphabet’s inclusion in the Dow Jones, with one welcoming its entry into the index.

Another bullish trader speculated on a move toward the $400 level following the announcement.

The GOOGL stock has gained over 11% year-to-date.

Also See: NKE Stock Gains 2% After-Hours As Nike Names New CFO, Reaffirms Outlook — Retail Calls Leadership Transition ‘Promising’ 

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