Google Parent Alphabet Announces 20-for-1 Stock Split
Surprise Move Boosts Share Price
Alphabet, the parent company of Google, has announced a 20-for-1 stock split, a move that will significantly reduce the price of its shares.
The stock split was approved by Alphabet's board of directors and will take effect on July 15, 2022. As of Friday, June 10, 2022, Alphabet's stock price was over $2,200 per share. After the split, each existing share will be divided into 20 new shares, which will be worth around $110 each.
Stock splits do not affect the value of a company and are often done to make shares more affordable to a wider range of investors. In fact, investors can expect that each newly divided share will represent the same percentage ownership of Alphabet as each existing share.
The stock split announcement came as part of Alphabet's quarterly earnings report, which showed strong financial results. Alphabet's revenue increased by 23% year-over-year in the fiscal quarter that ended on March 31, 2022, to $68 billion. Furthermore, the company reported a net income of $16.4 billion, a 34% increase year-over-year.
The stock split news was well-received by investors, and Alphabet's stock price rose by more than 5% in after-hours trading.
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