Google announced on yesterday during its Earnings report a 20:1 stock split. This move is similar to what Tesla and Apple did when they split their stock making it more affordable for the average investor to become an owner in the companies.
Alphabet, Google’s parent company, reported better-than-expected earnings. Alphabet reported quarterly revenue of $75.2 billion up 32% from last year indicating that the company is outperforming year after year. Also, Google announced an intent to do a 20:1 stock split. After the announcement, the Alphabet share surged over 8%.
As I am writing this, one share of Alphabet is trading at $2757.57. If the 20:1 stock split occurs, that means Alphabet will be trading at around $137.87 per share. This means anybody that do their internet searches on Google need to open a Robinhood, E*trade or some other brokerage account to own a piece of the company. And no more excuses, this stock split makes it affordable to everyone willing to get in the investment game. Even now you can go on Robinhood and start purchasing fractional shares of google even at the $2757.57 per share price.
However, don’t get to excited, Alphabet’s board of directors made this announcement. It still has to get shareholder approval in July of this year.
Wall Street normally doesn’t get to excited about a company dining a stock split. Basically traditional Wall Street wisdom says a stock split only gives current investor more shares but the value of those shares along with the value of the company remains unchanged.
Is this really true?
Wall Street might be losing its grip on what is considered conventional investment wisdom nowadays.
After mega-cap companies including Apple and Tesla announced stock splits in the past, each of those companies saw a significant share price gain following their share split announcement that in turn significantly increased those company’s market value. And given that its Google following Tesla and Apple’s lead, it probably follows that the latest split announcement could boost Alphabet’s market value the same way.
Apple in 2020 announced a 4:1 stock split and within a month of the announcement, Apple increased $500 billion in value. Tesla in August 2020 announced a 5:1 stock split and Tesla gained over 70% in increased market value within 30 days of its stock split announcement.
A simple announcement can send company values surging. This is why you have to have a stake in the game to ride these surges when they happen.
And just like that, Larry Page and Sergei Brin, co-founders of Google, saw their billions grow by the billions. Their combined net worths grew by $3.5 billion on Tuesday. WOW! See what a simple announcement to the world of what you gonna do will do to your value.
Page is now currently worth around $117.9 billion and Brin is worth around $113.7 billion.
It’s Wednesday ya’ll, what announcements are you making about yourself today that increases your market value?
ORDER YOUR COPY OF JUSTIN CARSON’S MANIFEST DESTINY JOURNAL AND START MAKING SOME ANNOUNCEMENTS TO YOURSELF THAT INCREASES YOUR VALUE
