Shares of Google parent company Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) are about to get a lot more affordable. On July 15, GOOG stock will begin trading on a 20-for-1 split adjusted basis.

Shareholders will receive 19 additional shares of Alphabet stock for every one share they own on the date of the split. The stock split will lower the price of Alphabet’s shares to around $110 from more than $2,200 currently. That will put the share price at its lowest, most affordable level since 2005, a year after the technology company went public.

This provides a great opportunity for investors to add a world beating technology firm to their portfolio without breaking the bank. The shares have only split once before, in 2014, when the company reorganized and rebranded itself as Alphabet. And that 2-for-1 split only lowered the share price to $567.55.

Doubling Down

Alphabet’s stock split comes after the company’s share price more than doubled between May 2020 and the start of this year, reaching an all-time high of $3,042 and putting the shares out of reach for many investors. However, since the 20-for-1 split was announced at the start of this year, GOOG stock has fallen 22%. Cheaper but still expensive for most investors. The split will enable more investors to buy Alphabet’s stock, expanding the shareholder base and, potentially, leading to a rally in the share price. Although it should be noted that Alphabet is undertaking the stock split during very difficult market conditions. Amazon’s (NASDAQ:AMZN) stock slid 18% the week after it executed an identical 20-for-1 stock split in early June.

Stock splits have become popular this year with several other notable companies announcing plans to carry them out, including electric vehicle maker Tesla (NASDAQ:TSLA), e-commerce company Shopify (NYSE:SHOP), and high-end furniture retailer RH (NYSE:RH). Companies see stock splits as a way to spark interest in their shares, attract price sensitive retail investors, and lower the sticker shock many people feel when looking at a stock that trades for more than $500 or $1,000 per share. While stock splits don’t change the fundamentals or underlying financials of a company, they do make the stock available to a greater number of investors.

Solid Fundamentals

Aside from the fact that the stock split will dramatically lower the price of GOOG stock, investors should also like that Alphabet remains one of the best run and most influential technology companies in the world with solid fundamentals and a stellar earnings track record. Alphabet’s revenue last year totaled $257 billion, which was more than the combined totals of automotive giants Ford (NYSE:F) and General Motors (NYSE:GM). Alphabet is currently the eighth-biggest U.S. publicly traded company by revenue, and it has forecast that its sales will grow more than 2o% this year. The bulk of the company’s revenue continues to come from digital advertising, of which it holds a 27% global market share through vehicles such as YouTube and its Google search engine. 

But there is a lot more to Alphabet than online searches and advertising. The Mountain View, California-based company has its tentacles in everything technology related these days — from Google Pixel smartphones and self-driving cars to artificial intelligence and cloud computing. The company uses the $134 billion of cash sitting on its balance sheet to invest in a variety of new ventures. While many of them, such as Google Glass, don’t pan out as hoped, some new ideas, such as the Google Home smart speaker, end up being homeruns. This constant focus on diversification keeps Alphabet at the forefront of the technology sector and its share price climbing to new heights.

Since going public in August 2004, GOOG stock has gained more than 4,000%. The consensus view of analysts is that the stock should gain another 43% over the next 12 months. Plus, the company has announced that it is undertaking a $70 billion share repurchase program. 

Buy GOOG Stock After It Splits On July 15

Alphabet’s upcoming stock split is being called a “generational buying opportunity” for investors. Following the split, investors will have an opportunity to buy Alphabet shares at their lowest, most affordable price since the company’s initial public offering (IPO) nearly 20 years ago. Adding Alphabet to a portfolio gives investors exposure to a cutting edge technology company that is sure to provide gains over the long-term. While Alphabet’s share price is down this year, the decline is due entirely to the broader sell-off in technology stocks and has nothing to do with Alphabet’s performance or outlook. At $110 a share after the split, GOOG stock is a definite buy.

On the date of publication, Joel Baglole held long positions in GOOGL and GM. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.