Alphabet (GOOGL)

Shares of the parent company of the world's largest and most used search engine, Alphabet, did not enter 2022 on a good note. However, Alphabet not only beat all Wall Street estimates, but it was another company that decided to share news of a stock split, which excited retail investors.

Like Amazon's stock split, this move by Alphabet does not change the fundamentals of its business. One can think of a stock split as the equivalent of taking a company's market capitalization (a pie) and cutting it into more slices. Investors own more shares (slices) of this pie, though their total percentage ownership of said company remains the same.

This move has been seen as a bullish one by investors, as it allows Alphabet to offer options to lower-income employees, as well as allow for employees to sell off a portion of their holdings without impacting the company's share price significantly.

Of course, this news overshadowed otherwise strong Q4 results which further the long-term thesis on this stock.

Overall, I remain bullish on Alphabet as a long-term winner in the U.S. search market. Those looking for a place to hide right now have an excellent option with GOOGL stock.

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Comments

AfraSimon
2022-03-19
AfraSimon
Waiting on the next big dip coming before split. We are holding a stable and extremely successful company that will delight in years to come.
- CatherineGunter:
  Both GOOG and AMZN are pretty much bullet proof as they head towards their splits. Nice to own both if possible.
- MatthewWalter:
  up 126.52 for the week Great gains still under buy price but all good for such a strong company!
- BaronLyly:
  I love how many people on this board try to "scare" investors into selling. 🤣🤣🤣 GOOG isn't going anywhere. Major gains to come 💪
- ChristKitto:
  this stock is still way undervalued. I see 3500 by the end of the year. I did the math and even 3500 is a very conservative price. Happy investing.
- CrystalRose:
  Amzn has been roaring since stock split announcement, Google not so much. Google's day will come.
Vandaluus
2022-03-19
Vandaluus
Google's market leadership is well entrenched. Unless it self implodes, or a new technology disrupts its service segment, the future bolds well.
dong123
2022-03-19
dong123
Dude, I'm already pretty bearish on Google's future.
- a9032ReplyWilliam85:
  Dude, you need to understand the basic concept, big is not strong.
- William85:
  Why do you say that?Google is still the largest search engine company in the world
MoneyCentral
2022-03-20
MoneyCentral
Strong cashflow companies with significant moats for competitors to overcome. Good investments even though it may not move in the short term. News like record profit or stock split sends it higher
Michelle Ong
2022-03-21
Michelle Ong
Like back thanks
jgaldon
2022-03-21
jgaldon
Weary of american stocks going forward, even though Google is as solid as it gets. We expect past to repeat itself (money flowing back to faangs) and probably right. then again rotation comes, we out