The loss-making cloud service business grew rapidly.
Search engine giant Google’s parent said Tuesday it will split its shares 20 relative to one. In other words, for each share held, the company will distribute an additional 19 shares.
The change will take place in mid-July.
In this way, the owners’ percentage ownership of the company will not change, but the company’s share will be cheaper in terms of unit price and stock exchange lots.
This, in turn, could increase the ability of retail investors to buy shares of Google.
Many Listed companies tend to split their shares, especially in situations where there has been a large increase in the value of the shares.
For example, Google’s comparable stock price was $ 54 in August 2004, compared to $ 2,753 on Wednesday night. In other words, the company’s market capitalization has more than 50-fold increased during that period.
A year ago, Alphabet’s share price was close to two thousand dollars.
Alphabet last split its shares in 2014. At that time, one new share was issued to shareholders for each share held.
All however, companies will not split their shares even if the price of one share rises to the skies.
The best-known example of these is probably a large investor Warren Buffettin managed by Berkshire Hathaway Investment Company. Its price for one A share was $ 471,184 on Wednesday night.
The value of the A share is intended to emphasize that Buffett, 91, is specifically an investor seeking long-term appreciation.
Since 1996, however, Berkshire Hathaway has had a cheaper Series B share for retail investors.
Alphabet released its most recent quarterly report on Wednesday night after the US stock markets closed.
Alphabet said its results nearly doubled in 2021 compared to 2020. The October-December result was approximately $ 20.6 billion.
According to the company’s press release, last year’s profit was about $ 76 billion. At the end of 2020, the corresponding amount was about 40.3 billion.
The company’s growth has been boosted by, among other things, advertising revenue and the company’s cloud services.
Good growth figures exceeded forecasts and raised the company’s share price on the secondary market by more than six percent. In Wednesday’s forward market, Alphabet’s share was up about 10 percent.
Google advertising revenue grew 33 percent in the fourth quarter, despite two traditionally large industries, tourism and commerce, experiencing a wide range of difficulties due to pandemic constraints and supply chain bottlenecks.
On the other hand, Google benefited from the growth of e-commerce and the general rapid advancement of digitalization.
Google earns the majority of its revenue from advertising revenue.
According to research firm Statistics, Google’s share of the global search engine market in December 2021 was 86 percent.
The second largest player is Microsoft’s Bing, with a market share of 7% of searches.
Google Cloud cloud services continued their loss-making expansion last year.
In October-December, revenue from cloud services rose 45 percent to $ 5.5 billion year-on-year.
The unit’s operating loss last year was $ 3.1 billion
In its annual report the company says it launched last year 200 different new products, features or initiatives.
In key user figures, the company said it ensures the security of 1.5 billion emails a day or 7.5 billion minutes spent in video conferencing.
According to Google, the company also processes four billion photos every day and scans through one hundred billion apps in the GooglePlay app store.
Alphabet the stock price rose 65 percent last year, The Wall Street Journal reported.
In January, the stock market experienced a general downturn, as the prices of large technology companies in particular made a downward correction with the US Federal Reserve’s interest rate hikes and inflation concerns.
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