Sam Boughedda

Stocks of Alphabet (NASDAQ) are up 3.6% Monday ahead of its stock split with fellow tech giant Amazon (NASDAQ) taking effect Monday.

Although a stock split does not fundamentally change anything, Alphabet and Amazon are expected to attract new investors as well as reward shareholders by giving them 19 shares for each one of their existing shares.

Amazon currently trades around $128 after moving higher in the wake of the split. On Friday, shares were closing at $2447 or $122.35 (post-split).

Alphabet had declared a 20% stock split back February, and shareholders approved this plan at their 2022 Annual Meeting on June 1, 2022.

Stockholders who are record as having held shares on the Record Date will be entitled to 19 additional shares in the Alphabet stock class for each share they have. The shares will trade on a split-adjusted base on July 18, 2022.

Google shares are still down 18% despite the news of the stock splitting. This is due to the selling off in growth stocks, as inflation and higher rates continue to weigh on multiples.

Tesla (NASDAQ): Another tech giant is set to go public after it announced in March that it would be doing a stock split.