GOOG vs GOOGL: Everything You Need to Know About the Google Stock Split

Google stock split grabbed media attention and remained the top news for several days. Analysts are still analyzing its impact days after the split which means Google is getting the much-needed marketing and publicity in the financial industry. Page and Brin https://forex-review.net/ wanted to cut the price of the stock, but not at the expense of losing voting power. Thus, the company instituted a savvy split, rather than a new stock issuance. Through this split, the company was able to offer a new class of stock, the class C GOOG.

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 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.

1. Microsoft (MSFT 1.22%) is best known for its Office suite of productivity tools and ubiquitous Windows PC operating system.
2. And while the stock split itself doesn't have any bearing on Google's fundamentals, it is still a positive sign for the company's long-term prospects.
3. Based on Bloomberg data, US call option volume has surged tremendously over the last five years.
4. Since the last (and the first) stock split in April 2014, GOOG stock has appreciated 326%.
5. 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.

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.

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After taking a big stake in ChatGPT parent OpenAI, Microsoft released Copilot, a suite of AI-infused assistants designed to streamline mundane, time-consuming tasks. Google shares are one of the most sought-after shares with a trading price of nearly $2,200 before the split. This makes it impossible for a small investor to buy a decent number of shares. GOOG and GOOGL stocks have been in high demand for over two decades at this point. And of course, the values of these stocks have been pushed sky-high as a result. Stock splits are a great way to make stocks more affordable for investors, and that’s exactly what is driving Alphabet to conduct its splits.

Alphabet (GOOGL) Stock Spit: What Does This Mean for Investors?

Alphabet's diversification strategy involves significant investment in various sectors, increasing competition, legal hassles, and regulatory scrutiny. As of 5 April, analysts anticipated sales and marketing expenses for Q to grow 14.8% year-on-year, and Research and Development (R&D) expenses to grow 17% year-on-year. If fixed costs increase without a corresponding increase in revenue, margins could trend downward.

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.

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.

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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.

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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 bitstamp review 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.

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.

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.

This is only the second time in its history the company is splitting its stock.

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.

What the Alphabet Stock Split Means for Google Investors

Alphabet CEO Sundar Pichai also highlighted a significant development that Google Cloud is exploring in the call. It's working on how the Cloud team can use blockchain further to support its customers' needs in this space. GCP has been astute in embracing the use of blockchain to differentiate itself in the cloud segment against AWS and Azure. As a recent Google Workspace user, I initially had plenty of adjustment challenges from Microsoft Office.