London Daily

Focus on the big picture.
Saturday, Oct 24, 2026

Google just made its stock much more affordable

Google just made its stock much more affordable

Not everyone has thousands of dollars on hand to purchase a single share of Google. Soon, investors won't have to.

What's happening: Google parent Alphabet (GOOGL), the third largest public company in the United States, announced after markets closed on Tuesday that it will execute a 20-for-1 stock split in mid-July, making each individual share less expensive and therefore more accessible.

That would reduce the price of Class A shares from $2,753 at Tuesday's close to about $138 per share.

The news has helped send Alphabet's stock up nearly 11% in premarket trading on Wednesday.


In addition to making Alphabet shares more appealing to everyday investors, the move could "set the stage for inclusion into the [Dow Jones Industrial Average]," analysts at UBS noted. The closely-watched index, which consists of 30 US stocks, is weighted by price, so including Google at its current value would lead to big distortions.

Apple was added to the Dow in 2015 after it completed a stock split. (The iPhone maker split its stock again in 2020.)

Sophie Lund-Yates, an equity analyst at Hargreaves Lansdown, told me that Alphabet's stock split is "a mark of confidence."

"It shows management is very happy with where they are," she said.

Breaking it down: Well into the pandemic, which has boosted demand for digital advertising as people spend more time online, Google's ad business is still growing at a rapid clip. Ad sales grew nearly 33% year-over-year to $61.2 billion during the three months ending in December.

That helped Alphabet generate a $20.6 billion profit last quarter, trouncing Wall Street expectations.

"The accelerated demand [for online advertising] we saw during the pandemic is, in my view, permanent," Lund-Yates said. "Or at least a large degree of it is."

The results are getting investors excited about a broader set of tech companies that rely on ads. Facebook's Meta, which reports its latest results on Wednesday, is up 4% in premarket trading. Snap and Pinterest, which follow on Thursday, are 4% and 2% higher, respectively.

Lund-Yates thinks tech stocks could remain unstable, though, until there's more clarity on the Federal Reserve's plan to start hiking interest rates. Expectations that borrowing costs will begin to rise soon have roiled the sector.

"I think continued swings are going to be likely," she said. "The Nasdaq in particular doesn't really know where it's going to land at the moment."

OPEC and allies meet with oil prices near 7-year high


Energy prices remain very elevated, and OPEC and its allies face growing pressure to intervene. But is there much the group can do?

The latest: The Organization of the Petroleum Exporting Countries and other top producers like Russia — together known as OPEC+ — will hold a virtual meeting on Wednesday with global crude trading near a seven-year high.

Goldman Sachs has alerted clients that OPEC+ could announce plans to step up production by more than expected instead of sticking to its typical monthly increase of 400,000 barrels per day.

"We view growing potential for a faster ramp-up at this meeting, given the pace of the recent rally and the likely pressure from importing nations," the investment bank's strategists wrote.

Brent crude futures, the world benchmark, recently jumped above $90 per barrel due to solid demand and concerns that Russia-Ukraine tensions could disrupt energy flows in Europe. This time last year, they were trading near $55 per barrel.

However, there are reasons to think OPEC+ won't agree to requests from countries including the United States to deviate from its plan. The group is already failing to reach its monthly target of 400,000 barrels per day due to production shortfalls in several countries.

Output from OPEC+ countries increased by only 250,000 barrels per day in December, or 63% of the group's stated goal, according to the International Energy Agency. It attributed the shortfall to reduced supply from Nigeria and Russia, which pumped below its monthly quota.

Saudi Arabia could step up and "quickly and easily drum up spare capacity if it decides it is beneficial," according to Louise Dickson, an oil market analyst at Rystad Energy. Yet it's not clear the kingdom, which benefits from higher oil prices, will choose to go that route.

Should PayPal buy Robinhood?


Robinhood is still losing money, and the trading app reported a drop in the number of users in its most recent quarter. Is it time for the struggling online broker to consider a sale?

That's the question my CNN Business colleague Paul R. La Monica is raising. Robinhood's stock is trading at $14.65 per share, more than 60% below the initial public offering price when the company made its Wall Street debut last year.

The business has already seen massive consolidation. Morgan Stanley now owns E-Trade and Charles Schwab has gobbled up TD Ameritrade. Last week, UBS bought robo-advisor Wealthfront for $1.4 billion.

Paul's thought bubble: Given this trend and Robinhood's recent results, could it catch the attention of a company like PayPal (PYPL), which also has a large base of younger customers and is looking to step up its game in investing?

"I can see them getting bought out or taken private," said Hugh Tallents, a partner with consulting firm cg42. "But they wouldn't be interesting to big banks, Schwab or Morgan Stanley. A wild card could be PayPal."

PayPal's user base, especially the younger adopters of its Venmo service, could mesh with Robinhood die-hards. And last summer, PayPal hired a former executive at Ally Invest to lead a new Invest at PayPal unit.

"Robinhood has over 20 million accounts and the customers are young and active traders," noted John Wu, president of Ava Labs, a cryptocurrency trading platform. "It's an attractive demographic."

Wall Street seems certain that PayPal is willing to spend to grow. There were rumors last year that it made a $45 billion takeover offer for Pinterest. With its current market value of about $12 billion, Robinhood would be a much smaller deal.

Up next


AbbVie (ABBV), Ferrari (RACE), The New York Times (NYT) and Marathon Petroleum (MPC) report results before US markets open. Facebook's Meta (FB), Qualcomm (QCOM) and Spotify (SPOT) follow after the close.

Also today: The ADP report on private payrolls for January posts at 8:15 a.m. ET.

Coming tomorrow: Earnings from Honeywell (HON), Hershey (HSY), Shell (RDSA), Clorox (CLX), Pinterest (PINS) and Snap (SNAP).

Newsletter

Related Articles

0:00
0:00
Close
UK Conservative Party Suspends Former Electoral Candidate Following Undercover Investigation
Actors and Writers Condemn British Anti Terror Legislation Targeting Activist Groups and Free Speech
Central Bank and Treasury Monitor Inflation Risks as International Monetary Fund Upgrades United Kingdom Growth Forecast
Storm Boelo Batters British Isles With Eighty Mile Per Hour Winds Causing Widespread Power Outages
British Intelligence Services and Technology Firms Partner to Counter Artificial Intelligence Enabled Cybersecurity Threats
UK Consumer Confidence Falls at Fastest Rate Since Brexit Vote as Cost of Living Intensifies
Chancellor John Healey Prepares Landmark Autumn Budget Focused on Devolution and Fiscal Rules
Northern Ireland Executive Ministers Reach Consensus on Shared Economic Development Priorities to Stimulate Regional Growth in Belfast
Department for Business and Trade Finalizes Conditional Support Package for Advanced Semiconductor Fabrication Facilities in Newport
Welsh Government Unveils Regional Industrial Development Strategy to Attract Green Energy Investment to South Wales Manufacturing Hubs
Foreign Secretary David Lammy Concludes Diplomatic Mission to European Capital Cities to Strengthen Post-Brexit Defense Cooperation
Department for Environment, Food and Rural Affairs Implements Stricter Regulatory Compliance Standards for Water Utilities Across England
Office for National Statistics Reports Moderate Wage Growth Stabilization and Resilient Employment Figures Across the United Kingdom
Scottish Government and Trade Union Representatives Reach Tentative Pay Agreement for Public Sector Transport Workers in Edinburgh
National Health Service England Announces Emergency Capital Funding Allocation to Reduce Winter Emergency Department Bottlenecks
Bank of England Monetary Policy Committee Signals Cautious Approach to Interest Rate Reductions Amid Persistent Inflation Pressures
British Prime Minister Keir Starmer and Treasury Officials Finalize Urgent Fiscal Adjustments Ahead of Upcoming National Budget
Tour de France Organizers Confirm Historic Grand Depart Featuring Edinburgh and Yorkshire Stages
National Cyber Security Centre Issues Urgent Alerts Following Global Security Vulnerability in Core Programming Software
Independent Energy Analysts Warn Great Britain Faces Highest Winter Power Tariffs in Europe
Major British Defense Contractors Commit to Delivering Forty Thousand New Apprenticeships and Training Placements
New Bradford Railway Station Infrastructure Project Approved to Transform Regional Transit Connectivity Across Northern England
Welsh Infrastructure Stakeholders Press Government for Accelerated Local Sourcing in Military and Uniform Manufacturing
Scottish Council Governance Crisis Triggers High-Court Legal Challenge Over Leadership Ouster Bid
High Street Bakery Chain Greggs Announces Major Factory Closures and Seven Hundred Job Cuts
Automotive Manufacturer Jaguar Land Rover Advances Advanced Defense Technology Partnership with European Allies
Treasury and Bank of England Officials Signal Persistent Concern Over Inflation-Driven Interest Rate Path
International Monetary Fund Upgrades United Kingdom Growth Forecast While Issuing Inflation Warnings
National Health Service Leaders Warn of Severe Capacity Pressures as Early Winter Respiratory Infections Surge
Government Issues Emergency Resilience Guidance Advising All British Citizens to Stockpile Essential Supplies
United Kingdom Private Sector Growth Beats Expectations in October Driven by Resilient Services and Manufacturing
Barclays to Cut Five Thousand Jobs in Major Artificial Intelligence Adoption and Cost-Cutting Overhaul
Piper Tomahawk Aircraft Crash Near Drymen in Stirling Claims Two Lives as Investigators Deploy
North Sea Transition Authority Approves Jackdaw Gas Field Production After Ministerial Authorization
Government Injects One Hundred and Forty Million Pounds to Expand Urgent Care Ahead of Winter Crisis
Department of Health Warns Further Pay Rises Will Derail National Health Service Waiting List Targets
Major Environmental Emergency Declared in South Wales Following Aerospace Kerosene Spill
Tank Barrel Production Returns to Britain as Defence Contractors Accelerate Domestic Rearmament
Government Approves Controversial Jackdaw Gasfield Development in the North Sea
National Health Service Maternity Safety Review Condemned Over Flawed Artificial Intelligence Integration
Dozens of United Kingdom Government Services Taken Offline Amid Critical Software Vulnerability
Barclays Announces Five Thousand Job Cuts Citing Artificial Intelligence Productivity Gains
Treasury Relaxes Post-Financial Crisis Accountability Rules for City of London Executives
United Kingdom Government Issues Unprecedented Guidance Urging Citizens to Stockpile Essential Supplies
United Kingdom Consumer Inflation Accelerates to Eleven-Month High Driven by Transport Costs
United Kingdom Public Sector Net Debt Breaches Three Trillion Pounds Ahead of Autumn Budget
Department for Science, Innovation and Technology Commits Fifty Million Pounds to Establish Regional Artificial Intelligence Innovation Clusters
Ofgem Directs Major Energy Suppliers to Expand Vulnerable Household Support Funds Ahead of Winter Heating Season
Home Office and National Police Chiefs Council Unveil New Intelligence-Led Strategy to Tackle Organised Immigration Crime Networks
First Minister John Swinney Secures Scottish Parliament Approval for Comprehensive Climate and Green Energy Infrastructure Strategy
×