Is the stock split a big event for the technology giant Alphabet?

This week, Alphabet Inc. (GOOGL) will split the shares, making them available to a wide range of individual investors. Will that be the beginning of the new uptrend? Close of trading on Friday, July 15, there will be a split (a division of shares) in the ratio of 20 to 1. That is a share that costs about $2,300 into 20 shares of about $115 each. Such a price is much more affordable for many investors who previously could only purchase a share of one Alphabet share and only through specific investment applications.

In addition, investors will now be able to more easily add Alphabet shares to their long-term portfolios, including retirement savings. Alphabet had split only once before: in April 2014. But then the ratio was different: every 1,000 shares of GOOGL into 1998 shares. Then the volume of shares increased, but the price practically did not change; that is, the split increased the value of the GOOGL stock. Of course, ten years ago, the situation on the stock market was different. 

Now Alphabet’s stock is trading 21% below the 52-week high, and some experts expect a recession in the global economy. At the same time, GOOGL bought near 52-week lows, which means some investors may be interested in the opportunity to purchase the Internet giant’s shares at an affordable price. It should understand those individual investors cannot always ensure a steady upward movement of quotations. But Alphabet is a major player that can be attractive to institutional investors. In the first quarter, Alphabet’s revenue approached $670 billion (+23% year-on-year). The company controls almost 30% of the global digital advertising market and over 90% of Internet search services.