Summary: Google (Alphabet: GOOGL) completed its 20-1 stock split for Class A, Class B and Class C shares on July 15, 2022.
Since the split, GOOGL stocks are up about 4% as of the market close on July 28.
Google Stock Split History
Alphabet (GOOGL) has undergone three stock splits in its history. The first split took place on April 2, 2014. This was a 2-1 stock split, meaning that for every one share of Google stock an investor-owned, they received two shares in return.
The second split occurred on April 27, 2015 and was also a 2-1 split. Most recently, Google underwent a 20-1 stock split on July 15, 2022. This means that for each one share of Google an investor owned, they received twenty shares in return.
Investors who owned Google prior to any of its stock splits would have seen their investment increase significantly in value. For example, someone who bought one share of Google at its IPO price of $85 would now have 84 shares worth over $12,000 if they held onto them since the first stock split.
What is a Stock Split?
A stock split is when a company divides its existing shares into multiple new shares. This has the effect of reducing the price per share while increasing the number of shares outstanding.
Stock splits are usually done in order to make shares more affordable for small investors and to encourage trading. They can also be seen as a sign that a company's stock is doing well.
Google's 20-1 stock split was proposed in order to make its shares more accessible to a wider range of investors. The move was also seen as a vote of confidence by the company's management in its future prospects.
Is the Google Stock Split Bullish?
Some investors view the most recent Google stock split as a bullish sign for the company. This is because when a company splits its stock, it is generally seen as a sign that the company believes its shares are undervalued and that they will go up in value in the future.
The Google stock split may also be seen as a way to make the stock more accessible to a wider range of investors. This is because when a company undergoes a stock split, the price per share decreases, making it more affordable for small investors to buy into the company.
What’s Next for Google Stock?
It remains to be seen what effect, if any, the Google stock split will have on the share price in the long run. However, in the short term, it appears that the stock split has been bullish for Google, with the share price increasing since the event. only time will tell if this trend will continue.
Will Alphabet (GOOGL) conduct more Stock Splits?
It is difficult to predict whether or not Alphabet will conduct more stock splits in the future. However, given that the company has now undergone three stock splits in less than a decade, it is possible that management may consider another split if they believe that the share price is undervalued and that the stock could benefit from increased liquidity.