Google shares jumped Wednesday after the search giant’s parent Alphabet delivered investors a hefty windfall on Tuesday: a 20-for-one stock split.
Shares briefly touched a record $3,000 after the search giant announced a one-time special stock dividend for shareholders of record on July 1, 2022.
Ahead of the news, shares closed at $2,752.88. At these post-split levels, the stock would be about $138 per share. It applies to all three classes of stock.
“So the reason for the split is for some investors, it makes our shares more accessible,” Ruth Porat, Google’s chief financial officer, said in an interview with FOX Business’ Susan Li. “And so we thought it made sense to do the timing of it is given the need to increase the number of authorized shares to affect the split.The request for additional shares does go into our proxy.And then with shareholder approval, we would expect to affect the split after the close of business on July 15.”
|VCLO||SIMPLIFY EXCHANGE TRADED FDS VOLT CLUD & CYBERSECURITY D||12.50||+0.26||+2.12%|
|FCOM||FIDELITY COVINGTON TRUST MSCI TELECOMMUNICATIONS SVC||49.48||+0.73||+1.50%|
|VOX||VANGUARD WORLD FDS TELECOMMUNICATIONS SERV ETF||130.62||+1.87||+1.45%|
|XLC||THE COMMUNICATION SERVICES SELECT SECTOR SPDR FUND||76.08||+1.49||+2.00%|
The move will also benefit exchange-traded funds that have large holdings of the search giant as tracked by ETF Database and may also pave the way, down the road, for the stock to be added to the Dow Jones Industrial Average, say index watchers.
|I:DJI||DOW JONES AVERAGE||35629.33||+224.09||+0.63%|
|IBM||INTERNATIONAL BUSINESS MACHINES CORP.||137.25||+1.72||+1.27%|
Revenues rose by $75 billion, up 32% year over year. Earnings per share were $30.69 vs. $22.30 from the same period a year ago.
“It’s been a very strong quarter for us,” Sundar Pichai, CEO of Alphabet and Google, said during a call with analysts. “Our teams have helped millions of businesses of all sizes and launched dozens of important features to help them get the most out of their online marketing spend. These businesses are the backbone of our global economy and the heart of our community.”
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Google 1 year: +43%
Over the past 12 months, shares of the search giant have gained 43%, exceeding the S&P 500’s 19.6% run.
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