Why Alphabet Should Split Its Stock

Stock splits have become all the rage lately. Apple (NASDAQ: AAPL) jump started the trend with its unexpected decision to split its stock. Tesla (NASDAQ: TSLA) followed shortly thereafter with a split of its own.

With both Apple and Tesla having pulled the trigger, some investors expect that many other companies will do stock splits soon. Among the best candidates for a stock split would be Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). Below you'll find several reasons why Alphabet should be the next to follow in Apple's and Tesla's footsteps.

Alphabet has only done one stock split in its time as a publicly traded company, and it wasn't a typical split. In 2014, the search engine giant distributed one share of nonvoting stock for every share of voting stock that shareholders owned. That was equivalent to a 2-for-1 stock split in terms of economic impact, but the move was controversial. Many investors didn't like the idea of Alphabet's dual share classes, with one class of stock not getting any voting rights. Since then, the dual class structure has become almost commonplace, especially in the tech industry.

Source Fool.com