Alphabet stock split lands with a thud in worry-filled market
BNN Bloomberg
Even for Alphabet, financial gimmickry is no match for the power of the bear market.
The Google parent’s shares sank 2.5 per cent on Monday, the first day of trading after a 20-for-1 split that brought its stock price down to the US$100 range from more than US$2,000. Alphabet shares dropped more than 3 per cent this week while the Nasdaq 100 Stock Index advanced and has fallen more than 20 per cent since the split was announced Feb. 1.
It’s not alone. Of the four companies in the S&P North American Technology Index that split their stocks this year, none of them have gained appreciably since announcing the plans. Amazon.com Inc. has fallen 12% since declaring its split in March. Canadian e-commerce company Shopify has fallen 38 per cent and cybersecurity company Fortinet Inc. is up about 2 per cent.
