Will Google stock split boost its share price?

At its earnings call this week, Google made an announcement of an upcoming 20-for-1 stock split effective in July. With this split  the stock will trade at around $150 post-split, based on a price of around $3,000.

As you know, there is nothing changed for the stock value with a split mathematically. So why does Google opt to split its stock? Well, there may be some different reasons but one main reason is probably related to a potential boost to its stock price. Why so?

Take a look at the comparison company's stock and a Google Trends search of the term "Google stock"...As the figure below shows, the higher the stock went, the less interested average investors were in the stock, meaning the high share price may have deterred many people from investing it. 

One way to resolve that: make the stock appear to be more in the reach of the average investor. In other words, low share prices may get a lot more general people to become interested in the stock as it is more accessible to average investor, especially those with shallow pockets. I also believe so, especially for option trading. E.g. one will need 300K to do just one covered call at a price of $3000 but just need $15K at a price of $150. So you can bet there will be a lot more option trading for Google post-split. 

As such, we may see a positive boost to the Google stock price when the split becomes effective in July.🤗