- Date : 21/07/2022
- Read: 3 mins
Google shares are available at just $110. Find out the reason!
Alphabet, one of the largest tech companies in the world, was founded in 2015. Its founders are Larry Page and Sergey Brin. The biggest company in the Alphabet list of companies is Google, founded in 1998 by larry Page and Sergey Brin. The current CEO is Sundar Pichai, an Indian-American Business Executive. The firm's market cap is $1.44 Trillion, and it is one of the world's biggest and most respected tech firms.
The company headquarters are in Mountain View, California. Alphabet came into shape in 2015, when Sundar Pichai was made the CEO of Google. Alphabet includes other businesses as well and includes Calico, CapitalG, DeepMind, Google Fiber, Waymo, Wing, Intrinsic, etc. Eric Schmidt aims to make Alphabet a giant corporation with 26+ major subsidiaries, and Google will be one of the biggest subsidiaries of the firm.
Stock Split from 1 to 20
The Alphabet stock was split on Friday, 15th July 2022, from 1 to 20. This means that the investors having one share of Alphabet now have 20 shares of Alphabet. Let us make it clear that the stock split does not affect the fundamentals of the shares. It just means that the share has split into multiple parts.
This means that the number of shares has gone up, and the price per share has come down proportionally. The overall market cap of the firm remains the same. Stock-split just makes the price of a single share reasonable for common investors. Purchasing a $110 share is much more affordable for the general public than the $2200 share.
This is expected to benefit the share price, as the demand for the share might increase because of the perceived affordability of the share. This is expected to help the Alphabet stock to enter the Dow Jones Index. Although Apple stock is five times bigger, it is still ranked 13th in the Dow Jones index. The highest weightage in the Dow Jones index is with the United Health Group.
A stock split improves the perceived affordability of the share without affecting the company's fundamentals. The share price looks affordable to the general public, yet the firm's market cap remains the same. Alphabet is one of the largest tech companies in the world, with a market cap of $1.44 trillion. The chances of inclusion of Alphabet in the Dow Jones index have increased. Alphabet is already part of the S&P 500 and the Nasdaq 100 indexes. It is one of the most reputed tech companies and includes various subsidiaries across the tech spectrum. To understand the importance of international stocks in your portfolio, read this article on Why you should have international exposure to US stocks along with domestic equity?