Google stock hits 5-day low despite rush after stock split announcement


There is a steady realm of careful investors who look toward the top big-cap tech stocks as a conservative placement among global stocks, and therefore any slight change in their structure can lead to a depletion of confidence.

The Silicon Valley giants have dominated the top end of the American stock markets for many years now, and due to their size and market dominance in most areas of global business combined with their responsibility to shareholders and high public profile, they are often not subject to large moves.

Within these 'FAANG' stocks which consist of Meta (formerly known as Facebook), Amazon, Apple, Netflix, and Alphabet (formerly known as Google), a relatively small movement in an upward or downward direction in terms of stock price is considered newsworthy.

Over the past few days, one of these stocks has been making a far more rapid downward direction than its ordinarily steady movements, and that stock is Google.

Google stock, which is traded on the tech-friendly NASDAQ exchange under its Alphabet Inc Class A listing, has been on a very noticeable downward journey for the past few days.

At close of business yesterday in New York, Google stock had declined by 0.86% compared to its opening price, however the real indicator of a bearish mood is its performance over the last five trading days, in which it has gone down in value by some 7.95%.

This decline in confidence, especially to that extent, is rare for Google, however it is likely that it has been fueled by the announcement by Google just a few weeks ago that it plans to perform a stock split.

At first, the market responded well to this announcement, and Google stock outperformed the market between the announcement taking place and close of business on April 4, however since then it has been volatile to say the least.

At the end of last week, Google stock had begun to decrease in value, and when the US market opened on Monday this week, it began to drop of noticeably.

Google's proposed 20:1 stock split is set to take place in July 2022, and at that time, Google shareholders will receive 19 additional shares for each share held after market close on Friday, July 15th. Alphabet stock will begin trading split-adjusted on Monday, July 18th, with an estimated value of between $140 and $150 per share.

It is therefore difficult to see how the stock has declined this much when a potential windfall is on the cards, and Google's plan is no different to the near future plans of Tesla and Amazon, both of whom are looking toward a stock split.

As it stands, Google is $2,554.29 per share which is by no means the doldrums and is still higher than this time last month when it suddenly dropped to 2,519 per share, however it recovered quickly and had been ahead of the market for around two weeks before this new drop which has been worsening over the past few days.

It is interesting to see relative volatility in this big tech stock, and where it will lead as the week progresses.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Financial Market News

US Government Shutdown: Assessing Economic Impact and Recession Risks Inflation Still Dogs the Economy: What Are the Central Banks Doing About It? Economic calendar: NASDAQ 100 May Keep Falling, High Volatility in Oil Markets, Potential Appreciation of the US Dollar Financial Markets Waking Up after a Turbulent Week: Important News Economic Calendar: RBA, BOJ, BOE, and Fed Meetings

Latest articles

Financial Market News

US Government Shutdown: Assessing Economic Impact and Recession Risks

The recurring spectre of a government shutdown has once again loomed over the United States, prompting concerns about its potential economic consequences. The shutdown may occur this weekend unless lawmakers agree on spending levels and whether to give more aid


S&P 500 Analysis: Price Reaches The Edge of Abyss

Investors in the US stock market have serious reasons to worry: → The likelihood of a shutdown of government agencies is becoming more and more real. It could happen as early as next week if a budget agreement is not reached


Bitcoin Cash Analysis: Promising Resistance Breakout

Yesterday, the head of the SEC regulator, Gary Gensler, answered questions for 4 hours before the Financial Services Committee of the US House of Representatives, which, among other things, related to cryptocurrencies. What has become known: → on the eve of

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.