Better Stock Split Stock to Buy Now: Amazon or Alphabet?


The first six months of 2022 were marked by wild volatility and market-moving news events, such as the Russian invasion of Ukraine and the Federal Reserve’s biggest rate hike in more than a quarter century. But amidst this constant barrage of news, investors are becoming increasingly intrigued by companies announcing stock splits.

A stock split is a way for a public company to change its stock price and the number of shares outstanding without affecting its market capitalization or operating performance. Conducting a forward stock split is one way companies can make their shares nominally more affordable to retail investors who may not have access to fractional shares.

Paper stock certificate reading stocks.

Image source: Getty Images.

More importantly, stock splits are viewed as a positive sign by Wall Street and investors. A company’s stock price wouldn’t be high enough to warrant a split unless it’s performing well and outperforming its peers.

Earlier this year FAANG shares Amazon (AMZN 2.49%)


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