Why don't they just split the stocks? ($AMZN $GOOG)

Discussion in 'Stocks' started by felixbocharov, Aug 23, 2016.

  1. These two guys are two juggernauts in the market and I still can't understand why these companies still haven't split their stocks?! :banghead:
     
  2. OptionGuru

    OptionGuru

    I hope not ....... option traders need $500+ stocks such as GOOGL, AMZN, PCLN.




    :)
     
  3. d08

    d08

    Why split? It makes sense for highly liquid equities NOT to split as the spread is actually smaller compared to if they split 10:1.
     
    zdreg likes this.
  4. jnbadger

    jnbadger

  5. I guess someone forgot to tell them they should run their businesses for the convenience of daytraders...
     
  6. Perhaps not recently, however BOTH have already split their shares.

    When Google split its shares, it simply created a new class of shares without voting rights. If it hadn't, the stock price would currently be well over $1,400 per share.

    http://www.fool.com/investing/2016/07/11/google-stock-split-history-the-most-controversial.aspx

    AMZN has already had THREE splits, but not recently.

    https://www.stocksplithistory.com/amazon-com/

    Apparently, Facebook is contemplating a similar structure to split its shares whereby it would create a new class of shares without voting rights, similar to what Google did.
     
  7. dealmaker

    dealmaker

    They want to keep the shares in the hands of institutional buyers....
     
    Gotcha likes this.
  8. why is that?
     
  9. Sig

    Sig

    A $.05 change in GOOGL represents a far smaller percent change in the underlying than a $.05 change in the price of a $5 stock. Min tick sizes in options are one of the few legitimate reasons for reverse stock splits.