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Is Google Stock A Buy Before Its Upcoming Stock Split?

Apr. 04, 2022 10:42 AM ETAlphabet Inc. (GOOG), GOOGLAAPL, AMZN, QQQ, TSLA38 Comments
Bradley Guichard profile picture
Bradley Guichard


  • Alphabet stock has outperformed the market since its recent stock split announcement.
  • The announcement has been somewhat overshadowed as Amazon and Tesla get set for their own splits.
  • The question is: is it better to buy right before the split or right after?
Google Announces EUR 1 Billion Investment In Germany, Including Renewable Energies

Sean Gallup/Getty Images News

When Is Google Stock Splitting?

Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL) recently announced a 20:1 stock split that will take place in July 2022. Shareholders of record will receive 19 additional shares for each share held after market close on Friday, July 15th. Alphabet

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Bradley Guichard profile picture
If you are a medium to long-term investor looking for an analysis of equities focused on cash flow, growth, and other critical metrics from a financial professional who knows financial statements inside and out, consider giving me a follow.While I am Tech-focused, I have a diversified portfolio, including growth and value equities, REITs, and dividend stocks. I like to use options for income and risk management when the opportunity arises. I have over 15 years of experience in the market. I am a practicing CPA; however, I have learned about investing more from avid reading, market watching, experience, and of course, making mistakes over the years. Also, am an admitted Excel junkie. I believe Benjamin Franklin when he said: "An investment in knowledge pays the best returns," and Warren Buffet that "The most important quality for an investor is temperament, not intellect." I am constantly learning and focusing on long-term goals - even when the market misbehaves.  Thank you very much for reading, and please feel free to leave me a message in the comments or send a private message. All the best!

Analyst’s Disclosure: I/we have a beneficial long position in the shares of GOOG, AAPL, AMZN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (38)

So today is May 6 and GOOGL is down 15% since the announcement vs S&P down 8%.
I continue to buy the name on dips.

Google continues to have a strangle hold on search.

YouTube speaks for itself.

Cloud looks like it should be breakeven --- maybe even profitable --- by year END 2022.

The company, virtually, has ZERO debt with about $140 Billion of cash and, beyond that, are an absolute cash machine.

There is no reason to not continue to accumulate in this name and, when the stock split happens (same to for Amazon), the retail investor is going to be able to play the names more than they are now due to the per share affordability.

IF Google gets an invite into the Dow, you can expect an even larger spike as well.

Bottom line: LONG GOOG.
@Google is Golden Also for what I have gathered, GOOGL has drastically reduced the stock options for their employees or providers this will keep the dilution of stocks down.
@Google is Golden it’s a buy on every dip. They will increase buybacks this year as well.
If they keep buying their stock back at the same rate all longs should be in real good shape in a few years!
dieuwer profile picture
$GOOGL needs to start paying a dividend.
@dieuwer the concept sounds good, however, the tax consequence would be an inconvenience. I'd rather they continue to buy back shares and grow the way they are --- obviously it has rewarded shareholders pretty phenomenally!
@dieuwer Buy backs are better!
@Google is Golden Please inconvenience me. Dividends rock.
birder profile picture
I bought GOOGL, FB, and ANZN all at about the same time. Of the three GOOGL is up the least. FB is up the most.
CDNwealthsaver profile picture
Its a buy before and after the split. I think most people would hold the same point of view.
Buy TSLA instead
@Kevin Dunn Based off of what? Balance Sheet --- Google wins. Growth prospects --- Google wins. Competition --- Google wins. Recession --- Google wins. etc...etc...I'd rather buy GM over Tesla, to be frank. Google is in an absolute class of its own --- especially compared to Tesla.
@Google is Golden they are equally great companies to invest in bit TSLA is likely to grow beyond anything Google can dream of. Patience.
@Kevin Dunn Time will tell but unless it's Starlink then I think it is more likely than not that the days of Tesla trading at a premium to that of its piers is unlikely. GM, Ford, BMW, Mercedes, Audi, etc...all rolling out quality electric cars. Can't be good for Tesla's growth nor can it be good for their stock price.

Google, on the other hand, Still number 1 search. YouTube continues growing. Cloud is a growth vehicle that is on its way to growth, with high margins! The two are not comparable, Google is the champion here.
wow everyone thinks its a buy. you guys are so smart
@omarakthar why do you even waste your time commenting?
selling options on it lol after split..easy
GOOG is the only legal monopoly in the US. YES it's a buy!
@MaxZanetti Microsoft
Please wait, we need someone to sell to.
DividendNow profile picture
Buy now and buy later after split when it dips. Long GOOG
Legacy Legends, LLC profile picture
Buy and hold!
r Negoro profile picture
Lucky i didn't buy google and instead bought twitter.
oldgofaster profile picture
@r Negoro

As ol Blury8 would say....Why not both?
r Negoro profile picture
@oldgofaster i have google too, but i loaded up on twitter as it fell to $35.
DrGRob78 profile picture
I'm using dollar cost averaging between early March and late June to acquire shares in advance of the split. The goal is to acquire a healthy amount of shares before the split and dump them a couple of months after as Robinhood level investors gain access to the stock. When the price falls to around $150/share it is more accessible and I am anticipating a 20-25% price increase by the end of the year. I might hold longer as the situation warrants.
@DrGRob78 you can buy fractional shares on Robinhood so all their users already have access...
When the split was announced along with great earnings, the stock rose to more than $3000 per share. In my opinion, that's where it will be the day before the split, so for me, anything less than that makes it a buy. It may fall after that, in which case i would buy more. The company is killing it, hard not to be an owner and share in such success.
Is Google Buy Before Something That Is Irrelevant?
@adosko6 That's assuming people are rational. And I think most people know that answer to that.
@adosko6 it's far from irrelevant. One consequence is that Google may join the Dow index. Another is that options will have lower entry costs and options are the tail that wag the dog.

The financial theories that were written during the Great Depression can't explain today's stock market.
@zdenz correct.
Doc 224899 profile picture
Nothing says you can't divide your buy orders to occur pre- and post-split.
Pierre Rossouw profile picture
Simply, if the value is to keep increasing then, regardless of price per unit, the earlier you buy, the better!
sune profile picture
04 Apr. 2022
Short answer: Yes.
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