What to Do With Alphabet Stock as the Split Nears

GOOG stock - What to Do With Alphabet Stock as the Split Nears

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Google’s parent company, Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) is back with big stock splits to the market which means you do not need upwards of $2800 to own the stock. The company has recently announced a 20 to 1 stock split which will make it possible for a lot of investors to own the stock. With the stock split, it will be able to entice even more small investors. Many of whom have already flocked to the stock in the pandemic. GOOG stock is currently trading for $2,811 and is due to split on July 1.

After the stock split, the price of Class A shares could reduce to roughly $140 and the shares of the company hasn’t been this cheap in the past decade.

There is no reason to hype up GOOG stock, it is one of the best buys and a very safe investment but the stock split is making it even more attractive. There is renewed interest from institutional investors and retail investors. The market is turning bullish on the stock and there is a lot of excitement surrounding the event. GOOG stock has outperformed the market since the announcement of a stock split.

However, investors are confused about whether to buy the stock before or after the split. One thing is certain: there will be a solid buying opportunity after the split and if you already own the stock, continue to hold on to it.

The company has solid fundamentals and Alphabet has posted outstanding results for 2021. The sales saw a 41% year-over-year rise and the operating profit increased by 91%. Alphabet is one of the top companies in the world and it is here to stay. Google remains the backbone of the internet and the company’s cloud segment has shown terrific growth in the past few years. Investing in GOOG stock is a great long-term move and it will generate solid returns in the long term.

On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.

Article printed from InvestorPlace Media, https://investorplace.com/2022/04/what-to-do-with-goog-stock-as-the-split-nears/.

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