Larry Page (L) and Sergey Brin (R), the co-founders of Google, at a press event where Google and T-Mobile announced the first Android powered cellphone, the T-Mobile G1. (Photo by James Leynse/Corbis via Getty Images)
James Leynse | Corbis Historical | Getty Images
Google parent Alphabet announced plans for a 20-for-1 stock split on Tuesday as part of the technology company’s quarterly earnings statement. Alphabet stock was up more than 7% following the news.
The move comes a year and a half after Apple most recently split its stock, giving three shares for each share that investors owned.
Alphabet intends to split the Class A, Class B and Class shares of the stock, according to the earnings statement. The change requires shareholder approval. Each shareholder at the close of business on July 1 will receive, on July 15, 19 additional shares for each share of the same class of stock they own.
In 2012, Google added a third class of shares, Class C, with no voting rights. The company already had Class A shares, which carry one vote per share, and Class B shares, which are held closely by founders and early investors and carry 10 votes. The company maintained this stock structure through its 2015 rebrand to Alphabet.
Google conducted a 2-for-1 stock split in 2014, before its switch to Alphabet.
Shares of Alphabet stock have become more expensive lately, at over $2,750 each at the time of market close on Tuesday, having doubled in price since May 2020. The lower price would mean that more investors might be able to afford buying entire, rather than fractional, shares of the advertising company.
Were the split to happen as of Tuesday’s close, the cost of each share would go from $2572.88 to $128.64, and each existing holder would get 19 additional shares for every one they own.
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