Better Stock-Split Buy: Alphabet or Tesla?
Stock splits generate a ton of excitement among investors. A stock split does not directly affect the value of an investor's holdings but opens up other opportunities. There is often a lot of stock-price movement around the announcement and split dates. But what about afterward? Once the excitement dies down, the stock will start trading on economics again. With this in mind, which of these juggernauts is the better long-term play?
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), the parent company of Google, and Tesla (NASDAQ: TSLA) are on the clock, with Alphabet's 20-for-1 split coming up on July 1 and Tesla's date still to be determined. Tesla will hold its shareholder meeting on August 4th when it is expected a 3-for-1 split will be approved. The execution of the split will likely follow shortly after. Based on recent prices, Alphabet will trade in the range of $115 per share and Tesla around $240 per share post-split. This could change drastically in today's topsy turvy market, of course.
Alphabet had a tremendous 2021 by nearly any measure. As shown below, sales and cash from operations rose 41% to $257.6 billion and $91.7 billion, respectively. And the company's diluted earnings per share (EPS) reached $112.20 on over 90% growth.
Source Fool.com
