Bravo to Alphabet (GOOGL), Google's parent company, for reporting a 32% revenue growth since 2020.
After a pandemic-led boom in digital advertising, Alphabet doubled its profits in 2021. This shows that Google remains the alpha in online advertising. Shares of Alphabet surged over 10% after the news broke out. It also happened to announce a 20-for-1 stock split.
A stock split allows a company to break each existing share into multiple new shares while lowering the price of each stock. From around $2,700, each stock will now cost $138 and be accessible to small investors. Tesla (TSLA) and Apple have done it before, and Alphabet is the latest.
Why it matters
Alphabet’s revenue has reinvigorated the trust in advertising companies – shares of Trade Desk (TTD), Magnite (MGNI), and others also rose after the news.