Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) stock is advancing 1.2% in early trading. The Google stock split is slated to occur after the market closes today.
Under the terms of the split, the owners of Alphabet’s stock will receive 20 shares of Alphabet for each share that they currently own. As a result, the price of GOOG stock will be about 5% of its current level.
In the wake of the Google stock split, retail investors will be able to purchase each share of GOOG stock for a much lower price than they currently can. As a result, Alphabet may become much more attractive to many of these investors.
Other Pricey Tech Stocks Have Split Recently
In June, Amazon (NASDAQ:AMZN) and Shopify (NYSE:SHOP) split. Since its June 6 split, AMZN stock has fallen about 10%, while SHOP stock has also dropped roughly 10% since splitting on June 29. Tesla (NASDAQ:TSLA) announced on June 10 that it would on Aug. 4 seek permission from its shareholders to carry out a 3-for-1 split. Since the automaker made that announcement, its shares have climbed roughly 5%.
Since Alphabet announced its stock split on Feb. 2, GOOG stock has sunk about 12%.
Four Analysts Remain Upbeat Ahead of the Google Stock Split
In recent, separate notes to investors, “Cowen’s John Blackledge, Evercore’s Mark Mahaney, JPMorgan’s Doug Anmuth and UBS’s Lloyd Walmsley all reiterated ‘buy’ ratings on Alphabet shares during the past month,” InvestorPlace Contributor David Moadel reported on July 14. He added that, “The price targets set for the stock were $3,000 for Blackledge, $3,300 for Mahaney, $2,800 for Anmuth and $2,650 for Walmsley.”
The Bottom Line on GOOG Stock
In my own June 23 column on Alphabet, I wrote that: “Alphabet is much less vulnerable to economic issues and competition than its peers,” while the company’s self-driving unit, Waymo, “should boost Alphabet over the long-term.”
With today’s stock split, this still holds true. Despite the potential for increased attention from retail traders, Alphabet stock’s overall narrative should stay the same.
On the date of publication, Larry Ramer 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.
