Now it is cheaper to invest in Google

Now you can invest in Google easily. Alphabet is attracting new small investors by splitting its shares by 6x. That means that all current shares will be multiplied by 6 without affecting the total company valuation. That will increase its liquidity in the market because every share will be cheaper to buy. Currently, Google shares are about $1,700. With the split, every share will cost $300.

Other big companies had done the same type of splits, here are some examples:

• Apple is another great example. It has done 5 splits since 1987. Every time it happens, new investors buy its shares pushing up the market cap.
• Tesla shares had a value of $1,200 in 2020. After the split announcement, the prices reached $1,500 per share. Investors perceived splits from well-known companies as something positive because small investors will buy those shares. Even more, Tesla market capitalization duplicated after the well-received split.

This split is not the only reason for Google’s high valuation. In the last quarter, Google had more profits than analysts forecasted. Additionally, its cloud computing business has been growing fast. Overall, Google is still a great option to invest and with a split we can have some shares easily.

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