@Ssimsim:Should I Buy GOOG on Monday After Its Big Split? Alphabet We’ve talked about how some great stocks are on sale right now. Here’s one for you: What if a stock went from $2,260 per share to $113… in one day… and nothing about this dominant business changed? You will see that Monday morning with shares of Alphabet(NASDAQ:GOOG, NASDAQ:GOOGL). But don’t get too excited. In this case, $113 = $2,260. That’s impossible, of course. So what’s going on? GOOG shares are splitting 20:1. After Friday’s close, every single GOOG share gets divided into 20 shares. There will now be 20X more shares on the market, but the price per share be 1/20th of what it used to be. This is not some once-in-a-lifetime bargain to jump on. However, interesting things can and do happen around stock splits. So in today’s Market360, let’s look at whether this particular split is a buying opportunity. Why Would GOOG Split? This is the second time in six weeks that a $2,000 stock has split 20-to-1. Amazon(NASDAQ:AMZN) closed at $2,447 on Friday, June 3. On Monday, June 6, it opened $125.25 after the split. Perhaps not coincidentally, the stock hit its highest price that day since the end of April. As of this writing, it is down about 10% since then. If it feels like you’ve been hearing a lot about stock splits, that’s not because the number of splits has gone up. It’s because big and well-known stocks are doing the splitting. Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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