Google's parent company will conduct a stock split: investors will receive 20 papers for one

Материнская компания Google проведет сплит акций: инвесторы получат 20 бумаг за одну

1 February Alphabet reported for the fourth quarter of 2021, also announced a stock split. In the postmarket, the paper grew by 9%.

results

Compared to Q4 2020:

  • total revenue — 75.3 billion dollars (+32%);
  • operating profit — $21.9 billion (+40%);
  • net profit - $ 20.6 billion (+36%).

And here is how revenue grew in the main operating areas.

Google Advertising - advertising on YouTube, Google Search and other services - $61.2 billion (+33%).

Google Cloud - cloud service - $5.5 billion (+45%).

Google Other — комиссии в Google Play, YouTube Premium subscriptions, Pixel gadgets and more - $8.2 billion (+22%).

Split

Even in its report, Alphabet announced a stock split. It will be held in July 2022 in the ratio 20:1. After the split, the share price will decrease by 20 once, and the number of shares held by holders will increase proportionally, from one to twenty. The market capitalization of the company will not change..

Split will be carried out for all classes of shares: Class A give one vote, Class B — 10 of votes, Class C non-voting. Class B stock held by founders and early investors, and they are not traded on the stock exchange.

Usually split is carried out by issuers, whose shares are worth hundreds or thousands of dollars. So they want to attract even more retail investors. For example, if Alphabet split today, then the price of its shares would fall from almost 3,000 to 150 $.

Promotions

In 2021, Alphabet shares performed the best of any big tech and rose by 65%. At the beginning of 2022, the company's papers first sank amid a general sell-off, but after the report grew up to 2990 $ and are trading near the all-time high.

Материнская компания Google проведет сплит акций: инвесторы получат 20 бумаг за одну

  Fundamental analysis of the company
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