By Sam Boughedda
Alphabet (NASDAQ:GOOGL) shares are trading 3.6% higher Monday in anticipation of its own stock split after fellow tech titan Amazon's (NASDAQ:AMZN) 20-for-1 stock split took effect Monday.
While a stock split changes nothing fundamentally, the move by Amazon and now Alphabet is expected to encourage new investors while rewarding shareholders, giving them 19 new shares for every one they owned.
Amazon is currently trading around the $128 mark after a move higher following the split. Shares closed at $2447 on Friday, or $122.35 post-split.
Alphabet declared a 20-for-1 stock split back in February and shareholders approved the plan at the 2022 Annual Meeting of Stockholders on June 1, 2022.
Under the Alphabet plan, stockholders of record at the close of business on July 1, 2022, will receive, after the close of business on July 15, 2022, 19 additional shares of the same class of stock for every share held by such stockholder as of the Record Date. Shares are expected to start trading on a split-adjusted basis on July 18, 2022.
Despite the stock split news, shares of Google are down 18% on the year amid the sell-off in growth stocks as inflation and higher interest rates weigh on multiples.
Tesla (NASDAQ:TSLA) is another tech powerhouse set for a stock split after announcing in March that it was planning a split later in the year.