Alphabet (NASDAQ: GOOGL) stock was up 1.8% to $114.75 in premarket trade on Monday after the 20:1 split. Last week, it was worth $2,255.34. Today the shares are trading at $113.00 (+2.79%)
Although the company’s market value remains the same, dividing the stock should lower the cost of ownership for individual investors. Many other publicly traded companies have lately authorized stock splits as well, including Amazon.com, Shopify, and GameStop.
Rohit Kulkarni, of MKM Partners, said in a note that “stock splits do not impact our fundamental perspective.” Because of its modest price tag, “Alphabet could garner some additional interest from individual investors.”
Alphabet’s advertising budget might be curtailed in the coming months if the economy slows down since it will be reporting results next week. After the split, Monness, Crespi, and Hardt & Co. analyst Brian White dropped his price objective for the company to $145 from $155 before, according to the Wall Street Journal.
According to FactSet, the majority of analysts continue to recommend investors buy the stock.