4 Reasons to Buy Alphabet Before Its Stock Split
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), the parent company of Google, will execute a 20-for-1 stock split on July 15. That split will lower Alphabet's trading price from about $2,300 to $115, but it won't actually change its market capitalization or valuations.
Nonetheless, Alphabet might attract some extra attention from retail investors due to its lower price tag. It could also generate more liquidity through options trading, since a single options contract represents 100 shares. And its lower share price could eventually lead to its inclusion in the price-weighted Dow Jones Industrial Average.
Alphabet might seem like a wobbly investment after its first-quarter revenue and earnings miss, but I believe it's still a great stock to buy ahead of its split for four simple reasons.
Source Fool.com
