If You Invested $1,000 In Google Stock After Last Stock Split, Here's How Much You'd Have Now

A leading technology company is making headlines Wednesday after announcing quarterly earnings and announcing a stock split. Here’s how its last stock split paid off for investors.

What Happened: Alphabet Inc GOOGGOOGL announced fourth-quarter revenue of $75.3 billion, up 32% year-over-year. The total came in ahead of a consensus estimate of $72.1 billion.

The company also beat estimates for quarterly earnings per share with a total of $30.69 EPS.

Search revenue hit $43.3 billion in the fourth quarter along with YouTube advertising revenue, which hit $8.6 billion.

The strong results from Alphabet led to shares to go higher in the after-hours trading session Tuesday.

Another reason for investor excitement was likely the announcement by the company of a stock split.

Alphabet announced it would do a 20-for-1 stock split, paid out as a one-time special stock dividend for Class A, Class B and Class C shares of the company.

If the stock split is approved, it will be effective with a record date of close of business on July 1, 2022. The dividend will be payable at the close of business on July 15, 2022.

Related Link: Alphabet Q4 Earnings Takeaways: Revenue Beat, 20-For-1 Stocks Split, Record Pixel Phone Sales 

The 2014 Stock Split: The last split done by Alphabet was back in 2014 and is noted as one of the most controversial stock splits of the time.

Alphabet announced a stock split in 2012, but instead of a traditional stock split that awards additional shares of the same stock, the split was set to create a new class of shares.

The new class of shares (Class C) came with no voting power, something that led to a lawsuit by shareholders. The lawsuit was settled in 2013 with provisions put in place to reward shareholders if the gap between the value of Class A and Class C shares became too large.

On March 27, 2014, Alphabet split its shares with every shareholder getting a share of Class C for each Class A share they owned.

Share Performance: Shares of GOOG (Class C) traded at a price of $566.44 on March 27, 2014, after the split took place.

A $1,000 investment at the time of the split could have purchased 1.77 shares of GOOG. The $1,000 investment would be worth $5,196.10 today based on a price of $2,935.65 at the time of writing.

Investors who bought shares of GOOG at the time of the last Google stock split have enjoyed a return of 420%, or around 52.5% annually for the past eight years.

Photo by Mitchell Luo on Unsplash

Market News and Data brought to you by Benzinga APIs
Posted In: NewsEducationStock SplitTop StoriesMoversTrading IdeasGeneralGoogleif you invested 1000 catalyst
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!