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.
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