CNBC’s Jim Cramer Goes Gaga for Google’s Massive 20-1 Stock Split: ‘Incredibly Shareholder Friendly’

CNBC’s Jim Cramer assessed Google’s stock will become a lot more affordable and “shareholder friendly” now that the company plans to commence a 20-for-1 stock split.

Cramer, alongside Carl Quintanilla and David Faber, led Wednesday’s Squawk on the Street with the news that Google’s parent company, Alphabet, announced the gigantic split in their latest quarterly earnings report. The move means that stockholders will get 19 additional shares for every share they hold, and as the price drops from $2,700 a share to about $140, individual shares will become a lot more accessible to retail investors in the coming months.

Cramer called the split an “incredibly shareholder friendly move” that will appeal to younger investors.

“They were acutely aware that there were a lot of younger people that really wanted to be part of the stock,” said Cramer. “Now, you can go to Robinhood and say, ‘I want $800 worth of Google,’ and that’s been very successful. But this is the kind of move that others are going to take and say, we have to get retail back.”

Cramer went on to call YouTube, which is owned by Google, “fantastic” — even though Google Cloud is losing money. The CNBC analyst noted that YouTube raked in $8.6 billion from ad revenue compared to Netflix’s $7.7 billion in the last quarter.

Faber noted that Alphabet’s stock is also up, which he also attributed to the news of the split.

“Not that the numbers were bad. They weren’t,” Faber said. “This is a company that trades at a multiple that is lower than the markets. You’re talking $21 billion in operating income this quarter. Just take a look at that over the course of the next year and what it will mean for Google and put a multiple on it. It is incredibly impressive.”

Watch above, via CNBC.