alphabet Shares rose 4% on Monday as the company officially joined. Dow Jones Industrial Average,replace verizon and add the iconic blue-chip designation.
The move comes despite continued pressure on the stock price. Despite Monday’s gain, Alphabet still had its worst month since February of last year, with six of the past seven weeks in the red. This marks a sharp reversal from May, when the company briefly outperformed its stock price. Nvidia In a few hours, it will become the world’s most valuable company by market capitalization.
Alphabet’s inclusion in the Dow stock is more symbolic than mechanical. The stock is already included in the S&P 500 and Nasdaq 100, where most benchmark assets are located, limiting the amount of forced fund buying due to index movements.
Companies that recently joined the Dow have also struggled since joining: Nvidia; sales force and apple All stocks fell 60 days after entering the index.
Google’s stock slump comes as investors question the return on the company’s AI investments, as lower-cost Chinese models are improved, Google DeepMind researchers tied to Gemini, coding tools are leaked to rivals like Anthropic and OpenAI, and computing access emerges as both a customer constraint and a recruitment issue.
Alphabet reportedly does not have enough computing power to meet demand from enterprise customers such as: metais eyeing infrastructure rivals. space xhelp fill in the gaps. Alphabet did not respond to multiple requests for comment on reports about Meta’s use of Gemini.
Access to computing has also become a recruitment strategy. Noam Shazeer, a former co-leader of Gemini who recently left Google to join OpenAI, reportedly cited reduced access to computing as part of his frustration.
At the same time, the Chinese model is driving down prices, just as Google is trying to build its enterprise business around Gemini. DeepSeek said the fourth version of its open source model will be released within two weeks.
That strain is now showing up on Alphabet’s balance sheet.
The company’s cash pile is shrinking, as it forgoed a share buyback in the first quarter for the first time in nearly a decade and raised more than $140 billion in debt and equity amid an expensive race to invest in AI capital.
WATCH: Alphabet stock continues to fall as AI talent migrates from DeepMind to Anthropic
Alphabet stock chart.
