Alphabet Inc., the parent company of the largest search engine in the world as well as one of the biggest social media platforms YouTube has announced its fourth quarter earnings. Stock prices surged by eight percent after the company announced more that expected earnings as well as a 20:1 split stock, which is expected in July.
The tech giant’s CFO Ruth Porat noted that its quarterly revenue was $75.3 billion which is 32 percent more than its earnings last year. Alphabet also announced one of the largest ever stock splits. It intends to split stocks from all three shares classes.
Last year, Alphabet was the top performing tech company. Its shares rose by 65 percent while the S&P 500 rose by 27 percent. The tech giant reported $257.6 billion as full year revenue for 2021. Its revenue, in 2020 was $182.5 billion.
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Alphabet shares have a value of more than $2,750 which is approximately double its value compared with mid 2020. If the stock split is approved by share holders as per Tuesday’s value per share of $2572.888, each shareholder will get an additional 19 shares for each share at hand. The cost of each share would fall to $128.64, making it more accessible to shareholders.
In case you are wondering whether a stock spilt affects share price, the answer is no; the value remains almost the same. However, as seen in the past, company’s that have stock splits often saw gains in share price in the weeks following the split, which raises the market value of the stock. Alphabet could also follow a similar path after its stock is split.
Forbes reported that Google co-founders–Larry Page and Sergey Brin’s combined net worth rose by 3.5 billion, on Tuesday, The two founders are in the 100 billion club. Larry Page’s net worth is $117.9 billion while Brin is at $113.7 billion.
As of 11:13 AM Pacific time February 2,2022 Alphabet (Googl) shares are trading at $2,980.97
