The Motley Fool·2025-04-04 08:10Core Viewpoint - Companies utilize stock splits to make shares more accessible and to signal optimism about future stock performance [1][5] Group 1: Stock Split Mechanics - A stock split involves issuing additional shares to current holders without changing the total value of their holdings, resulting in a lower price per share [4] - Investors favor stock splits as they enhance accessibility and reflect a company's confidence in future growth [5] Group 2: Alphabet's Stock Split History and Current Position - Alphabet executed a stock split in 2022, after which its shares increased by over 40% [3] - The company has a history of stock splits, having completed three in the past, indicating openness to such maneuvers [9] Group 3: Alphabet's Growth Drivers - Alphabet is leveraging artificial intelligence (AI) through its large language model, Gemini, which enhances its search capabilities and advertising effectiveness [6][7] - The company is investing significantly in AI, with plans to allocate $75 billion this year to support growth in this sector [7] Group 4: Current Market Conditions - Alphabet's stock is currently trading just under $160, a price accessible to many investors, but lower than previous split levels [10] - Recent economic concerns have impacted investor sentiment towards tech stocks, which may delay any potential stock split for Alphabet [11]