Technology conglomerate Alphabet, the parent company of Google and multiple former Google subsidiaries, released its quarterly earnings statement on Tuesday and revealed some big news in the process. Aside from reporting a 36 percent increase in profit in the last three months of 2021, the company also unveiled plans for a 20-for-1 stock split.
The “stock split” practice has been considered outdated in the past decade before making a big return in the wake of the COVID-19 outbreak. Several big tech companies, including Apple and Tesla, have already split their stocks in efforts to make their shares an affordable investment and more accessible for individual investors. Alphabet hopes to do the same once the action becomes official in July.
According to Alphabet’s statement, the company’s Board of Directors already approved the stock split for Class A, Class B, and Class C shares. However, the decision now is subject to stockholder approval. If stockholders give their consent, which is considered a pure formality, each one will receive a dividend of 19 additional shares of the same class of stock for every share they hold on July 1, 2022.
Even if the split will take several months to go into effect, Alphabet already experienced positives from the decision. Since the news was announced, the company’s stocks have already gone up 9 percent in extended trading.
