Explained: When is Google’s Alphabet stock split as shares hit record high

Google’s parent company Alphabet has confirmed plans for a rare 20-for-1 stock split, giving shareholders 19 more shares for each one they hold – but when does the split take place?

Here’s what you need to know about the tech giant’s announcement.

Stock split explained

Before we dive into Alphabet’s announcement, let’s explain the meaning behind a stock split.

A stock split or stock divide increases the number of shares in a company. If a stock splits 3-for-1, this means a stockholder has three more shares of a stock after the split takes place.

If there were 10 million shares of a stock and it splits 3-for-1, this means there are 30 million shares of that stock.

• OMG: Chicken Big Mac price explored as new McDonald’s burger launches today

Alphabet move explained

Google’s parent company confirmed a rare 20-for-1 stock split on Tuesday (February 1st 2022) after it reported record fourth-quarter earnings.

Alphabet chief financial officer Ruth Porat explained more about the decision in a conference call:

“The reason for the split is it makes our shares more accessible. We thought it made sense to do [it].”

Following the announcement, Alphabet stock shares had soared more than 9% by late Tuesday. The company also reported revenue growth of $75.33 billion in the fourth quarter, up 32% year-on-year.

Alphabet has followed in the footsteps of tech giants Tesla and Apple – their shares surged following a similar stock split decision.