Investing.com -- Alphabet Inc. (NASDAQ: GOOGL) shares rose 3.7% to $350.24 on Monday as the Google parent company began trading as a member of the Dow Jones Industrial Average, replacing Verizon Communications (NYSE: VZ).

S&P Dow Jones Indices announced the change on June 23. Alphabet became one of the most influential members of the 30-stock index due to its higher share price compared to Verizon, which was among the index's least influential components.

The addition expands the Dow's exposure to digital advertising, cloud computing and artificial intelligence sectors. Alphabet now joins four other members of the Magnificent Seven tech group in the index: Nvidia Corp. (NASDAQ: NVDA), Amazon.com Inc. (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL), and Microsoft Corp. (NASDAQ: MSFT).

The most recent Dow reshuffle occurred in November 2024, when Nvidia and Sherwin-Williams Co. (NYSE: SHW) replaced Intel Corp. (NASDAQ: INTC) and Dow Inc. (NYSE: DOW).

Index funds that track the Dow Jones Industrial Average must purchase Alphabet shares to reflect the change. The Dow had approximately $115 billion in assets indexed and benchmarked to it as of December 31, 2024, compared to roughly $20 trillion for the S&P 500, where Alphabet already holds membership, according to S&P Dow Jones Indices.

Alphabet shares have gained approximately 11% this year through Friday's close, ranking among the top performers within the Magnificent Seven group of technology companies.