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Google Stock Split 2022: Detailed Information About The Google Stock Split

3 Mins read

A stock split is when a company divides its existing shares, the number of stocks increases, the price gets reduced, and there is no overall impact on the business. It is a corporate action in which a company gives the additional stock to its shareholders at a fixed ratio. It will increase the number of shares held by existing shareholders but will see its price reduced by the stock split ratio.  

Here the stock split ratios are 2-for-1 or 3-for-1. After the Google stock takes place, a shareholder gets an additional one or two shares for every stock held. The unit price of the stock will decline by a division of two or three, accordingly, after the split takes place. The Google stock split was set to take place after the market’s close on July 15 and was provocative by many investors’ standards.

Google Stock Split

Photocredit: MarketWatch

Larry Page and Sergey Brin foundered Google. Google declared a 20-for-1 stock split in February, which was said to take effect after closing trading hours on July 15. The Google stock split will give way for the company to enter the Dow Jones Industrial Average and also become more attractive to retail investors. 

Here the stock split ratios are 2-for-1 or 3-for-1. A shareholder gets an additional one or two shares for every stock held. The unit price of the stock will fall by a division of two or three, accordingly, after the split takes place.

If you are wondering what the Google stock split is all about and want to know more about it, In this article is the right guide for you because we will be discussing Google Stock Split, what the google stock split means for investors, how many times Google has split stock, google stock a good buy since its stock split and so on.

Why is Google conducting a share split?

Companies carry out stock splits intending to make their stock prices more attractive to retail investors. Big Tech companies like Apple, Tesla, Nvidia, and Amazon, have recently announced or carried out stock splits of their own, having seen their share prices rise. 

It is essential to know that a company’s market value is usually measured by its market capitalization. The higher share price of the first company against the second company does not mean that the first company is more valuable than the second company. The market capitalization is calculated by multiplying the total number of outstanding shares by the unit share price.

What happens when a stock split?

It is essential to remember that the share’s price is also reduced, and this does not mean that the stock has become cheaper and the company’s fundamentals and the stock price have not changed.  

What The Google Stock Split Means For Investors.

The Google stock 20-for-1 split means Google investors will receive an additional 19 shares for each one they already own. The stock split is the company’s first stock split since April 2014,

How Many Times Has Google Split Stock?

Google stock class C, since its foundation, has once undergone a stock split. Google stock class C trades at a trivial discount to its class A counterpart, but the two prices often move in connection.

 Google was previously under its current parent company, Alphabet. In 2015, Google was restructured to operate as a subsidiary of a newly-created holding company called Google.

 

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Is Google Stock A Good Buy Since Its Stock Split?

Is Google stock safe to buy?

The company’s massive profit driver is the key to making Google a safe investment. Nearly 90% of Google’s earnings and revenues come from search, and these profits and revenues fund the projects.

Google formal company Alphabet’s 20-for-1 stock split was completed on July 18. The Google stock split effect at market close on July 15 and started trading at the new price today — following the announcement in February.

The Google stock split and increase in shares enable more investors to afford to invest in Alphabet and may broaden the company’s audience and reach. 

CFRA Research has a “Accept” opinion on the stock, reflecting their “view of valuation versus large-cap tech peers, free cash flow potential, and belief GOOG can stand a mid-teen annual revenue growth pace. CFRA also downgraded the stock from a “Strong Buy” on April 27, following first-quarter earnings.

Bank, America analysts that since 1980 S&P 500 companies that announced stock splits significantly outperformed the index 3, 6, and 12 months after the initial announcement.” Said analysts added that “stocks that have split on average gained 25% over the next twelve months, versus 9% gains for the broad index,” Seeking Alpha reported.

If you have questions, kindly comment below, and we will do our best to respond to your questions as soon as possible. Also, drop your view on the Google stock split and what the Google stock split means for investors.

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