Tuesday, November 29, 2022
HomeGoogleWhy Google stock is worth 20 times less than Friday

Why Google stock is worth 20 times less than Friday

It is no longer necessary to spend more than 2,000 dollars (and as many euros) to acquire a single share of the parent company of the famous search engine.

Last February, the board of directors of Alphabet (Google) announced its desire to divide the nominal value of the title by 20. The project was approved by the general meeting of shareholders in June and has been in effect since the opening of the American Stock Exchange on July 18.

The operation (“split” in English) automatically leads to a division by 20 of the price and a multiplication of the same number of Alphabet shares in circulation. On Monday, the value thus opened at 113 dollars, up 0.5% (the price history is recalculated taking into account the division).

Broaden the shareholder base

Companies whose share price is particularly high in nominal value are happy to carry out “splits” to make their shares more accessible, in particular to individual investors.

A month before Google, Amazon had already carried out a split of the same magnitude, resulting in a “drop” in its action from 2,400 to 120 dollars. At the end of June, another e-commerce player, Shopify, also divided its nominal by 10.

The GameStop video game group, which had short sellers trembling at the start of 2021, will implement a “split” this week. Its share price will be divided by four at the opening of the session on July 22.

Electric vehicle maker Tesla also plans to divide its par value by three, which would bring the share price back to around $250. The project must still be approved by the shareholders at the general meeting on August 4th. The company had already divided its nominal by five in August 2020.

Nintendo will proceed for its part to a split of 1 for 10 next October.

In France, Michelin quadrupled the number of its shares on June 16. At the end of 2020, Eurofins had divided its nominal value by ten.

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