So, if a shareholder had 10 GOOGL shares before the stock split, they had 200 shares after. Given its history of consistent growth and its ties to AI, 2024 could be the year Meta joins its big tech peers in conducting a stock split. For its fiscal 2024 third quarter (ended Oct. 29), Nvidia delivered record revenue of $18.1 billion, up 206% year over year, while its diluted earnings per share (EPS) of $3.71 surged 1,274%. Tepid results from the prior year skewed the comparison, but it helps illustrate the long runway ahead. Google stock split will give its employees flexibility as they can buy and sell shares that are vested to them in smaller proportions. As for the finer details, the Google stock split date is set for July 15, according to the company.

  1. This has pushed Microsoft’s stock price higher, up nearly 817%, with a price of about $376 as of Tuesday’s market close.
  2. This has fueled Meta’s robust stock price gains of 493%, with the stock price of roughly $357 as of Tuesday’s market close — within 6% of a new all-time high.
  3. The information contained within is for educational and informational purposes ONLY.
  4. In March 2014, the company enacted a 2-for-1 stock split, although rather than doubling of shares, it issued new Class C shares devoid of voting rights.
  5. If you’re an Alphabet investor, no need to Google how the stock split will affect you.

This increased liquidity could make it easier for Google shareholders to buy or sell their shares when they want to. The second implication is that the stock split could increase Google’s liquidity. When a company’s shares are trading at a high price, there is often less trading activity because fewer investors are willing to buy or sell the shares. There’s no denying the continuing trend toward digital advertising and the one-two punch of Alphabet’s industry-leading position and its billions of users worldwide. Rather, it’s the company’s history of robust performance and execution that makes Alphabet stock a compelling choice. It helps to give the process some perspective, so let’s add some numbers for context.

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Seeking Alpha has a neat tool to compare the analyst ratings history on each stock’s profile page. I pulled the following comparison chart which showed the rating on GOOG stock surpassing MSFT’s sometime in late March to lead the MAFANG/MAMANA. The consensus rating among Seeking Alpha authors is a “Buy” with a score of 4.27. Wall Street analysts are more bullish on Google stock, with a consensus rating of “Strong Buy” and a score of 4.7.

Is Google Stock A Buy, Sell, Or Hold?

This means that even small investors can now afford to buy shares of GOOGL. He finds undervalued companies with secular growth that appreciate over time. His approach is to look for companies with strong balance sheets and management teams in sectors with long growth runways. Unlike peers like Meta, GOOGL retains full control over much of its platforms, like search and YouTube. That valuation comparison is curious considering that AAPL is projected to grow at half the rate of GOOGL.

On August 24, 2023, AMC Entertainment Holdings (AMC) completed a 1-for-10 reverse stock split. That means that for every 10 shares owned, AMC stakeholders were issued one new share. With its stock split, Alphabet wanted to make its high-flying shares to become more accessible to retail investors.

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The move will dramatically lower the price of each share, so as to make them more affordable and appealing for smaller investors. Google’s parent company Alphabet is planning to split its stock 20-for-1, it revealed in its blockbuster earnings report Tuesday. It should be mentioned that the higher share price of company A versus company B does not mean that A is more valuable than B.

Why Does Alphabet Want to Split its Stock?

The companies hope that a reverse stock split will boost their share price and improve their reputation. The company conducted nine stock splits between 1987 and 2003, rarely letting its stock price exceed $175. While Microsoft hasn’t split its shares since 2003, the stock is now trading at a new all-time high of more than twice that price. And the company has only just scratched the surface of its AI opportunity, which suggests more stock price gains are ahead. Consequently, investors should avoid buying stock simply because of the pending split.

All Wall Street calls are either “Buy” or “Strong Buy”, not a single “Hold”, “Sell”, or “Strong Sell”, seemingly a demonstration of their confidence in the advertising giant. Analysts said the move may also make it easier for the company to enter the Dow Jones Industrial Average. The Dow currently has complex rules that bar Alphabet because its four-figure share price would throw off the weightings in the famous gauge. Shareholders of Alphabet’s Class A, Class B and Class C stock received an additional 19 shares for each stock they owned after the 15 July 2022 market close. As of 5 April, the average stock price prediction for Alphabet stood at $131.39, according to the latest data from MarketBeat. The highest projected price target was $165.00, while the lowest estimate came in at $113.00.

For each share of Alphabet stock an investor owns — currently trading for roughly $3,000 per share (as of this writing) — post-split shareholders will own 20 shares worth $150 each. Since the last (and the first) stock split in April 2014, GOOG stock has appreciated 326%. Hence, the share gains from this particular stock split cannot be attributed to the typical stock split to bring down the share price.

In order to participate in the split, one must own GOOG or GOOGL stock on July 1. GOOG and GOOGL will be undergoing a huge 20-to-1 stock split with this upcoming event. This means for every one share of GOOG or GOOGL stock one owns, they will receive another 19 shares on July 15. But each share will be worth $100, and the total value of your investment will remain the same. In this scenario, the total value of the investment would be around $200,000.

There is frequently excitement around the prospect of a stock split, with investors temporarily driving up the share price. Some investors believe that the lower price fuels a commensurate increase in demand for the shares, but that phenomenon is almost always coinspot review temporary. Over the long term, however, it’s the company’s business performance and financial results that will drive the stock higher — or lower. The parent company of Google said this week that its board of directors had approved a 20-for-1 stock split.

If a company whose shares cost $1,000 apiece underwent a 2-for-1 stock split, the overall amount of shares would double while the price of each share would drop to $500. An investor who owns 100 shares in this fictional company would still have $100,000 worth of stock, but would own 200 shares instead. It’s the latest stock split in Silicon Valley, following Apple and Tesla, which in recent years both split their stocks as their valuations skyrocketed. Here’s what you need to know about stock splits, and how Alphabet’s move will impact investors. The news — which arrived during a massive earnings report where the company reported revenue growth of 32% — helped send the stock up 7.5% during Wednesday trading.

You must have heard the cliched advice of not putting all your eggs in a single basket when it comes to stock investment. To follow this, you need to spread out your investment to multiple companies. With a commanding position in online advertising, GOOGL remains a compelling long-term investment.

Similarly, with Alphabet, its total market capitalization didn’t change (i.e., the number of shares times the stock price), just its share price did. The company’s most recent stock split was announced in May 2021 when the stock was trading at about $600 per share, just 13% above its current price. If things continue along the current trajectory — and history is any indication — it won’t be long before Nvidia announces its next stock split. If you are an individual owning a google stock, the Google stock split is not creating any administrative burden.