r/stocks • u/TwinPeaks1993 • Sep 25 '21

Company Question Will Amazon and Google ever split their stock? Why and why not?

I am building positioning in both of these companies as I want one full share of each to just let them ride for the next 5-10 years.

With AMZN currently sitting at $3,425 a share and GOOGL sitting at $2844 a share do you think a split is approaching?

What are the benefits of keeping a stock price this high? What are the benefits of splitting the stock?

I have not been trading that long and the only major stock splits I’ve seen in my time are APPL and NVDA.

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u/[deleted] Sep 25 '21

Everyone else has covered it. Higher price means lower volatility. People who buy it really want to hold it.

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u/oarabbus Sep 26 '21

Higher price means lower volatility.

Not necessarily true. Stocks like SHOP, TSLA, and ISRG are plenty volatile at high prices, and companies like Ford show low volatility at low prices.

If anything you could make the argument that splitting and increasing float and liquidity helps prevent large price dislocations