Better Stock Split: Alphabet vs. Shopify

Stock splits have been all the rage recently despite having few fundamental benefits. When a company splits its stock, one share breaks into two or three, or, in Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) case, 20 when its 20-for-1 split takes place in mid-July. Although the idea of receiving 20 shares for each share held is compelling, this means nothing if the company's business isn't headed in the right direction.

A stock split alone shouldn't be the basis for an investor to consider buying in. However, the fundamentals of some companies splitting their stock are appealing. Shopify (NYSE: SHOP) and Alphabet look especially exciting today, but which one is right for you? For many investors, the better stock-split stock to own might depend on your risk tolerance.

Parkev Tatevosian (Alphabet): There is arguably no more dominant business worldwide than Alphabet's Google search engine. The service commands an 85.5% market share. What's more, that's not Alphabet's only business segment. YouTube boasts 2.6 billion monthly active users. The two have undoubtedly helped Alphabet grow its revenue from $46 billion in 2012 to $257 billion in 2021.

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Source Fool.com