Alphabet (GOOGL) announced the split after the close of trading Tuesday in conjunction with its fourth-quarter earnings, which topped analyst estimates. Against the FactSet consensus of $27.80, Alphabet earned $30.69 a share in the period.
Alphabet is a well-run company with a dominant position in an important and growing market. As we know Alphabet better as its subsidiary ‘Google’ than by its own name adopted in 2015. Google dominates the search industry and generates tons of cash flow every year. It has quickly risen to become one of the world’s largest companies.
With a fresh batch of earnings results from major index companies, the stocks further shake off the volatility of last month. After a weak January performance, this week’s slate of earnings results has helped provide a fresh catalyst to markets.
The surprise moves of Alphabet to split its shares 20-for-1 could pave the way for the tech giant to enter the Dow Jones Industrial Average.
The move may make the stock currently trading at more than $3,000 per share more attractive and accessible to additional investors.
Following Alphabet’s earnings results, the other ad-driven internet technology companies including Pinterest and Meta gained shares in late trading.