How to make money off of alphabet or google’s stock split what is happening investors it is your boy jack i am not a financial advisor and we just got some quite considerable news from google that has led to a quite considerable move currently it’s up 6.28 but it was up over 10 at one stage based off of this news two primary reasons one came from a good earnings

Report and the other came from the announcement of a 20 to 1 stock split okay so i myself i’m a google shareholder um i’ve bought it initially in the 1300 range i bought it a few times on the way up it’s not a huge position but we’re up about 100 all together i want to make some more money from google baby so today’s video is going to be all about how to make money

From the stock split not just discussing you know the fundamentals of google whether or not it is a good or a bad company to buy i think just looking at the stock chart tells you that answer but we’re going to be speaking about some shorter term things some interesting things that have happened over the last few months with google stock price the 3k psychological

Number that is soon becoming well quickly becoming a resistance and what has happened in the past with stock blitz the two examples we’re really going to be looking at are apple what happened when it was announced and what actually happened when the split happens and tesla there are two recent examples there are two that investors more than likely will remember

Because they haven’t happened too long ago and they both offered quite similar things that happened now there is one big difference is that google split is not going to be happening for quite a considerable period of time okay all shareholders as of july 1st will receive new company shares on july 15th so that is one more thing we’re going to have to take into

Account and that’s what today’s video is going to be all about my friends if you would like to potentially get a free share of alphabet sign up to moomoo you can get five free stocks each value up to 3 hundred dollars technically after split that would be 23 shares of google if you are one of the lucky ones who gets it it’ll be the link in the pin comment it’s also

The first link in description it takes a few minutes of your time to set it up and get your first free stock it is literally free money baby so go ahead click that link also really quickly could i please ask you hit that like button it really helps me out drop me a comment down below let me know if you plan on trading google at all or just add them to your position

And please my friend if you are new around here hit that usb red subscribe button so with that being said google’s ad strength stock split plans boost alphabet shares okay so that is what we said at the start they came down to two primary reasons and really quickly we will just point out the irons okay for the quarter end on december 31st it earned a share on

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Revenue of 75.33 billion compared to a profit of 22.3 a share on sale of 56.9 billion in the year ago period so yes google are doing extraordinarily well even without announcing that stock split they do definitely deserve to go up in value to this extent in my personal opinion despite the fact that all they do is go up really so they smashed the estimates they had

Absolutely fantastic islands that’s what’s happened okay but what we are really looking at is this they said they would implement a 20 for one stock split so say for example google is trading at three thousand dollars and you own one share well you’re going to own 20 shares that are worth 150 each the primary reason people do this is just to make it appear cheaper to

Make it more readily available to the retail investor say for example people use brokers that don’t allow partial shares you can just go ahead and you know buy one share for 150 instead of one share for three thousand dollars that’s the main reason it happens in all honesty apple has done it on several occasions we saw tesla do it a lot of people do it once it gets

Really big a lot of people will be looking towards amazon now to see if they’re going to do one as well i would bet but anyway in the form of a one-time special stock dividend on each of the companies class a b or c stock so it doesn’t matter which you own as of right now now here’s the thing okay if the split is approved by alphabet stockholders all shareholders

As of july 1st will receive new company shares on july 15th okay so we’re going to go do the examples of appa and tesla okay so apple first of all here is where the split was announced like literally right here and you can see that it led to this continued upward move going from the realms of pre-split price 92 all the way up to 138 at the absolute peaks okay but

You will also see that here’s where the actual split happened and it went down a little bit on that day it went up over the coming days and then it really came down so is this a common theme is this something that happens often what does history actually tell us when the split’s announced we often see a little bit of a pump we see that stock price go up it continues

For oil and then it comes down okay you’ll see it still ended up above pre-split announcement but it came down a long way and it took you know a fair few months to get back to those originally high prices okay when we look at tesla we see a relatively similar thing okay here’s the split announced right august 11th right here and it goes from again pre-split 276 all

The way up here to nearly 500 the split happened here again it had two nice days and then boom there was that sell-off here if we just check really quickly why can i never find this short review short at the very top have 500 a share in the span of literally a few days you could have made 34 on that short okay right in the wave and let’s say that you didn’t open

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There let’s say you opened it the day after that read you’re still looking at a 30 green day so we can see this similar story with apple okay it goes up if people were lucky enough too short at the very top in no time whatsoever they made 25 on apple people also made money writing on the way up you got to remember that so how do we make money with these splits

A lot of the time you just got to take advantage a lot of people here are buying the news and then they will sell when it actually happens we have seen that with the two biggest recent examples apple and tesla in other news if we go to etoro they say how the split impact stock price there’s no way of knowing how each company stock price will react to the split

Of course you can’t know for sure there is historical data okay according to bespoke investment group between 2015 to 2020 stocks of companies that announced splits gained an average of 2.3 percent between the time they announced the split and the time it took place so we can use this data to do with google to say a couple of things one would be that it’s up much

Much much more than 2.3 percent so we could expect that it could come down there also was a gap created on the daily so we really could expect it to come down to here i mean even if you open a short position this very moment as i record this and you bring it down to feel like gap that’s a six percent gain on google that is extraordinary i mean truly extraordinarily

Likely to happen at some stage over the next couple of months if not literally in the next couple of days especially i bet a lot of people don’t realize that this split isn’t happening for months yet because they’re just thinking with apple and tesla it was a week or two this is going to be months away this hype is going to die off it will probably pick up again

Just before the split happens one other thing is that google is at nearly 3 000 and that’s a psychological number and you can see that it really and i truly mean really struggle to break up up there whatsoever and it came all the way back down to 2500 so with that being said it’s going to be tough for google to break that mark in my opinion it’s going to need

Something more than this these good ironings and this split so right now you’ve got to watch this gap if it went back up to 3k i would be very tempted to try short it down towards the 2750 mark or even 2800 and take away an easy seven to eight percent but we’re not going to be able to know how price is going to react to the split until closer we’re going to have

To wait a while but this is a trade to keep in the back of your mind in my opinion and i don’t particularly like the thoughts of shorten alphabet because look at that chart it is an absolute beast my friends if we look at that daily rsi you can see it approaching overbought levels when it was only at oversoul levels a matter of days ago so not the volatility we

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Are used to seeing with google but it is happening now nearly 70 of stocks outperformed the spx 500 index over the same time period so 2015 through 2020 during the year that followed the split so that could be a say that it’s going to be another good year for google it’s going to be a sign that you know if there is a pullback say towards that 2700 27.50 mark that

Could be a good buying opportunity for next year and maybe we could be looking towards another year of google where we can expect 15 20 25 earnings even given this market they’re one of the companies who’s going to continue doing well despite the fear in the market despite rate hikes etc etc so i think the easiest way to make money from this google stock split is

There’s probably going to be a day of you know selling somewhere along the line there’s probably going to be a day where people try to take their profits and this gap is going to get filled in buying anywhere around these marks and holding it for a year is going to be the easiest way to make money if it gets bought up and up a lot maybe approaches 30 50 or 3100

Maybe a short time short position will be a good idea me personally i’d be a little bit cautious of doing that it is google after all especially if you’re playing options it gets even riskier but anyway my friends that is how i believe we are going to make money from this stock split just by buying and holding google you know what i mean the fundamentals haven’t

Changed because of the split they have because sales have gotten better and they smash the wall street expectations out of the park we can look back at recent history see what happened with apple and tesla and again you can make that argument that if you get it at the top you can make a really nice quick short profit over the span of a week or two especially given

The current market climate red days do happen a lot more often than they did even back here so do be aware of that my friends but anyway if you watch this video all the way to the end you are a true legend and i really do appreciate you being here from the bottom of my heart your support means the world to me remember if you’d like those free stocks click that

Link in the comment or the description baby get yourself some free money you’re crazy if you don’t it only takes a few minutes you could get google and then that could turn into 20 shares imagine getting 20 shares of google just for clicking a button hit that juicy like button for me drop me a comment down below subscribe if you’re new around here i hope you have

A beautiful blessed day i’ll see you another video very soon peace

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