Did Google stock just split?
Google is just one of dozens of companies recently making its stock more affordable. The tech giant's parent company, Alphabet (GOOGL), split its two classes of shares (GOOG) by a 20-to1 ratio in July.
Alphabet (GOOGL) split its two classes of shares (GOOG) by a 20-to-1 margin, a move that reduced the price of one share from just over $2,200 on Friday to about $110 on Monday. The stock split doesn't change Alphabet's market capitalization.
After the split, Google's Class A shares that came with voting rights traded under the new ticker GOOGL. The new Class C shares that had no voting rights took over the GOOG stock ticker.
This was a 1998 for 1000 split, meaning for each 1000 shares of GOOGL owned pre-split, the shareholder now owned 1998 shares. For example, a 1000 share position pre-split, became a 1998 share position following the split. GOOGL's second split took place on July 18, 2022.
A stock split like Tesla stock can be tempting for investors because it allows them to buy what was a previously more expensive stock at a much cheaper price. But investors should never buy a stock just because of a stock split.
|Company||Stock Split Ratio||Announcement Date|
|Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG)||20-for-1||Feb. 1, 2022|
|Shopify (NYSE:SHOP)||10-for-1||April 11, 2022|
|DexCom (NASDAQ:DXCM)||4-for-1||March 25, 2022|
|Tesla (NASDAQ:TSLA)||3-for-1||Aug. 4, 2022|
The A class shares have the symbol GOOGL and come with one vote, while the C class shares have the symbol GOOG and come with no voting rights at all. The shares have the same economic interest in Google's business, so other than voting rights there is really no reason to prefer one or the other.
The all-time high Alphabet stock closing price was 149.84 on November 18, 2021. The Alphabet 52-week high stock price is 151.55, which is 55.5% above the current share price. The Alphabet 52-week low stock price is 83.34, which is 14.5% below the current share price.
Amazon.com announced in March 2022 that its board had approved a 20-for-1 stock split. It's the first split of the retailer's stock since three splits in the late 1990s. Stock splits have no effect on the fundamentals of the company, but may indicate that executives are confident in the direction of the business.
Monday marked the first trading day after Google parent Alphabet implemented its 20-for-1 stock split. The price of a single share of the company stock became more affordable after the split, dropping from roughly $2,200 on Friday to $113 on Monday morning.
Should I buy Alphabet stock before the split?
If you're looking for long-term growth, then it might make sense to invest before the Alphabet stock split. This way, you can get more shares for your money and benefit from GOOGL's future success. You can also get into the investment before the inflows of new investors start driving up the price.
In order to guarantee that the company's founders would retain control of the company, Google split its publicly traded stock into two: Class A GOOGL shares and Class C GOOG shares. The strategy behind the move is simple: owners of GOOGL stock would have one vote per share, whereas owners of GOOG have no voting rights.
Among the high-profile stocks that have split their shares in 2022 are Amazon, Alphabet, and Tesla, three of the most valuable companies in the world.
Is Google a good stock to buy? As of 28 October 2022, 30 analysts at TipRanks rated the stock a 'buy'.
Google's parent company will have a fair value estimate of $180 after its 20-to-1 stock split. For the second time in its history Google's parent company, Alphabet (GOOGL) (GOOG), is set to split its stock. The 20-for-1 split means Alphabet investors will receive an additional 19 shares for each one they already own.
Google Is Not a Buy Before July's Stock Split.
|GOOG||Alphabet Class C||$2,167.43|
So, what stock has split the most in history? The best known stock that has split the most is Apple.
When a stock splits, it can also result in a share price increase—even though there may be a decrease immediately after the stock split. This is because small investors may perceive the stock as more affordable and buy the stock. This effectively boosts demand for the stock and drives up prices.
These metrics support the thesis that Google is an excellent investment candidate for the long run. Firstly, Alphabet's Google Search & Other business performed very well in Q2 2022 notwithstanding macroeconomic challenges, and this bodes well for the long-term outlook for the company and its core business.
|AENZ Aenza S.A.A.||1-3||11/22/2022|
|IDRA Idera Pharmaceuticals||2-1||11/25/2022|
|BVXV BiondVax Pharmaceuticals||1-10||11/25/2022|
Does Google pay 2022 dividends?
The company has never paid a dividend, despite being one of the world's most profitable companies.
Why is GOOG more than GOOGL? Because A shares have more voting rights, and because these rights have some value, they often trade at a slight premium. In reality, GOOG and GOOGL often trade for just around the same price.
The difference between them is whether the shares carry voting rights. GOOGL is a Class A common stock, which gives its shareholders the ability to vote on company matters. GOOG is Class C stock, and it does not come with voting rights.
2022 is a bear market
This is a bad year to be selling stock. Ideally, you'd have a cash cushion to cover unexpected financial needs. That way, you wouldn't have to sell stocks in a down market.
|GOOG Annual Return On Investment||(Dec 31 2021) 2021||(Dec 31 2019) 2019|
|Y / Y Investment Growth||12.27 %||17.39 %|
|Y / Y Net Income Growth||88.81 %||11.74 %|
|Annual Return On Investment||25.77 %||14.89 %|