Forget the Stock Split: Here Are 5 Better Reasons to Buy Alphabet
Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) recently announced it would be splitting its stock 20-for-1 later this year. As a result, individual shares will become a lot more affordable for those without the ability to buy partial shares.
Stock splits don't do anything to increase or decrease the underlying value of the business. However, they have traditionally been associated with bullish price action and positive sentiment on the part of management.
A company splitting its stock is the last reason to buy shares. Investors should always focus on business fundamentals and business value, not the mere share price. Yet for Alphabet, there are a lot of fundamental reasons to own shares well beyond the stock split.
Source Fool.com
