5 Reasons to Buy Alphabet Before Its Stock Split
While stock splits don't change the intrinsic value of any company or stock, the increased liquidity that comes with a smaller per-share price could unlock interest from smaller retail traders. Therefore, buying stocks ahead of a stock split could lead to a short-term bump. After all, top tech stocks that have split their shares in recent years have typically gone on to do well.
But a split alone is no reason to buy a stock for the long term, a style we preach at the Fool. Nonetheless, if you think a pre-split stock is undervalued based on its business prospects, then by all means, buy ahead of the split.
Here are five reasons Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) looks undervalued today, making it a strong buy just a few months before its upcoming 20-for-1 split in July.
Source Fool.com
