Would a 88-for-1 stock split for Alphabet be much better?
Hello Mooers, welcome back!
Today is a special day. It marks the 4th day of the 15 days Lunar New Year (also known as Chinese New Year or Spring Festival) celebration, as well as the start of the Olympic Games 2022 held in Beijing (Capital of China), from 4 Feb 2022 to 20 Feb 2022. Not only that, we will be discussing about the 20-for-1 stock split for Alphabet stock.
The 20-for-1 stock split was announced on 1 Feb 2022. After the announcement was made, Alphabet stock rose by more than 9% in after-market trading. This shows that the market welcome the stock split as the current stock price was too expensive for ordinary investors to get hold of it.
With the upcoming 20-for-1 stock split, this will means that it will be cheaper to trade Alphabet stock options . This is because, right now, to trade 1 Alphabet stock option, investors will need to have at least USD $270,000 available in their brokerage account, as 1 stock options represents 100 shares of the underlying stock, and the underlying stock is currently priced at least USD $2,700 per share.
So, if we are Alphabet shareholder on 1 Jul 2022, every share that we hold will allow us to own an additional 19 Alphabet shares, which will be given on 15 Jul 2022. The Alphabet stock (* A-Shares, B-Shares and C-Shares) will begin trading on a split-adjusted basis on 18 Jul 2022.
* Alphabet stock is currently divided into 3 types (or classes):
A-Shares (traded under the $Alphabet-A(GOOGL.US$ ticker, whereby 1 A-share have 1 voting rights)
B-Shares (not traded and is owned by insiders, whereby 1 B-share have 10 voting rights)
C-Shares (traded under the $Alphabet-C(GOOG.US$ ticker and with no voting rights)
A-Shares (traded under the $Alphabet-A(GOOGL.US$ ticker, whereby 1 A-share have 1 voting rights)
B-Shares (not traded and is owned by insiders, whereby 1 B-share have 10 voting rights)
C-Shares (traded under the $Alphabet-C(GOOG.US$ ticker and with no voting rights)
With that, Alphabet will be attracting more attention from the market, but, this may not means that it will rise much more faster in Q1 2022. This is because, from the $Futu Holdings Ltd(FUTU.US$ MooMoo technical analyses, the stock is currently edging towards the ‘Overbought’ trend.
Also, the revenue estimates for Q1 2022 is much lower than Q4 2021, which could be due to the various factors such as high inflation, omicron variant, interest rate hikes, global supply chains turmoil and so on.
Thus, it may be much safer to either do a FOBO by trading Alphabet stock options or just JOMO for the time being, instead of the other choices that we discussed in our Crouching Tiger, Hidden Dragon, Phenomenal Apple, Iron Condor .
Hopefully, on 18 Jul 2022, we will not see Alphabet stock dropping over 25%, like what happen to $Meta Platforms(FB.US$ yesterday (3 Feb 2022), nor decline by over 18%, like $Snap Inc(SNAP.US$ did during yesterday (3 Feb 2022) market trading hours.
Do check out the links below to find out more about what Mooers feel regarding the two stocks ( $Meta Platforms(FB.US$ and $Snap Inc(SNAP.US$ ).
Meta Platforms drop more than 25% in Lunar New Year Day 3 (3 Feb 2022)
https://www.moomoo.com/community/feed/107734611394566
https://www.moomoo.com/community/feed/107734611394566
Meta Platforms Price Quick Poll (03 Feb 2022 Lunar New Year Day 3)
https://www.moomoo.com/community/feed/107734676013062
https://www.moomoo.com/community/feed/107734676013062
Snap down by 18% on 3 Feb 2022(Lunar New Year Day 3)
https://www.moomoo.com/community/feed/107734801973254
https://www.moomoo.com/community/feed/107734801973254
Lastly, in my opinion, I would certainly hope for a 88-for-1 stock split, because the announcement was made on 1 Feb 2022, which is Lunar New Year, and the number 88 looks like two pair of mandarin oranges, which symbolizes fortune and good luck.
That’s all for today, and thank you for your support and likes.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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