Will Google Stock Split Again? (NASDAQ: GOOG)

google stock chart

Google is currently valued at $1 trillion. Alphabet, Google’s parent company, recently completed a 20-for-1 stock split on July 15. This made the stock less expensive per share which allowed more retail investors access to the stock as whole shares and shareholders were issued additional shares.

Google is the largest search engine in the world. It is also the most profitable company in the world. Its algorithm is the most important thing about Google. It decides what you see when you type something into the search bar. 90% of all searches are done through the Google Algorithm.

Will Google stock split again? The short answer is yes. There is a possibility that Google could split its shares again. However, the company is currently experiencing a slowdown in growth. As a result, the company is cutting back on hiring and spending money. If the company continues to experience slow growth, then it may be necessary to split the shares again. Investors should keep an eye out for any news about a possible Google stock split.

Page and Brin hold the majority of the voting shares, but any future splits or increases in the number of shareholders will require the consent of Page and Brin. This looks unlikely at the moment given their past voting history.

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Stock splits are a common phenomenon in the financial markets. They increase the number of shares in circulation while keeping the total value of the company the same. A stock split does not affect the voting rights of shareholders. However, it may lower the share price, making it slightly more attractive to investors.

Google is an American multinational corporation headquartered in Mountain View, California, United States. Founded in 1998 by Larry Page and Sergey Brins, Google today employs approximately 40,000 people worldwide. Its corporate headquarters are located at 1600 Amphitheatre Parkway in Mountain View, California.

Google has gone down a similar path, carrying out a stock buyback that sets a new precedent while insiders and management claim full control.

Google stock split
Google stock split

Google Stock Split History

Alphabet (Google) stock splits are not uncommon. There have been many splits since the company was founded in 1998. The first split happened on March 27, 2014. On that date, Google stock was split two times. The first time was on March 27, 2014, and the second time was on April 27, 2015, creating class B shares. Class B shares were the only ones publicly available until 3 April, when Google issued a third stock split to create class C shares. Class C shares are the same as class A shares except that they are privately held.

How to buy Google stock if you don’t have hundreds of dollars.

If you want to invest in Google stock, you might want to consider buying fractional shares instead of full shares. Fractional shares allow you to purchase small amounts of stock at a time. You can also trade fractional shares online through brokers like M1 Finance.

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Google Stock Split Approval

Alphabet, Goolge’s parent company,  announced its plan to split its shares in August 2015, but it took until January 2016 before it actually happened. Shareholders had initially rejected the proposal because they were concerned that the split’s unique structure would benefit insiders at the expense of ordinary shareholders.

A bone-of-contention cycle revolved around how the tech giant planned to create multiple classes of stocks. Instead of doubling the number of shares as is the case when a company does a regular stock split, the tech firm decided to create a brand new type of stock. The new shares, called Class C, were to go to shareholders who owned Class A shares. Shareholders who owned Class B shares were also entitled to Class B shares.

Multiple Share Structure For Google Stock

Class C shares were issued at a discount to the market price of Class A shares. This meant that Class C shareholders had less value than normal shareholders. Insiders could sell their Class C shares and still retain all their voting rights. This meant that Class B shareholders were effectively disenfranchised.

In 2014, the company announced a plan to split its shares in two. The first half of the shares were offered at $14 per share, while the second half was offered at $21 per share. The split was approved by the SEC, and the company began trading on the New York Stock Exchange under the symbol “SIN” on April 1, 2014.

Compensation For Disparity

The settlement gave Class C shareholders a small amount of money when the price of Class C shares was lower than the price of Class A shares. This was done because the company wanted to avoid any potential lawsuits.

In recent decades, the disparity has been far greater at times, amounting to more than $30 per share or more than 5%. Amidst bigger than-expected disparities, there has also been a time when the disparity has narrowed to between 1% and 3%.

Class A shares are the most valuable, with each share holding 10 votes. Class B shares are the second most valuable, with each holding 1 vote. Class C shares are the least valuable, with each holding 0.1 votes. Class D shares are nonvoting shares, which means they don’t hold any voting rights.

Google has set the new norm for stock share classes.

Google has set precedent for stock splits. While other companies have tried to copy this model, it has become the new norm. Facebook has already hinted that it may consider doing the same thing if it decides to carry out a stock share split. Some companies have chosen to offer multiple classes of shares, in an attempt to ensure management retains control.

In a company with a proven track record, management should consider using multiple classes of shares. This will allow them to retain control while accelerating underlying growth.

Alphabet is an example of a company with different classes of shares that has become a juggernaut within technology.

Google Pivots

PivotClassicFibonacciCamarillaWoodieDM
S382.5296.82105.0386.48
S296.82102.28106.3495.76
S1102.89105.66107.65100.7899.85
P111.12111.12111.12110.06109.60
R1117.19116.58110.27115.08114.16
R2125.42119.96111.58124.37
R3139.72125.42112.90129.38
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