Alphabet shares rose 10% on Wednesday in the premarket after posting strong fourth-quarter results and announcing a 20-to-1 stock split, Business Insider writes.

A 20-to-1 split or stock split means that every Class A,B,C share held by an existing shareholder will turn into 20 shares, and the reason for this, according to Alphabet CFO Ruth Porat, is that “it makes our stock more affordable.”

Google’s parent company’s solid fourth-quarter results released Tuesday night beat Wall Street analysts’ expectations.

The company reported quarterly revenue of $75.33 billion, up 32% from a year ago and well above the average estimate of $71.17 billion of analysts surveyed by Refinitiv. Earnings per share came in at $30.69, well above the $27.34 expected.

For the full year 2021, Alphabet reported revenue of $257 billion, up 41% from a year ago.

The tech giant’s digital advertising business grew the fastest as advertisers began spending more to reach audiences that are increasingly shopping and searching online during the pandemic.

“Alphabet benefited from the boom in digital advertising during the pandemic, which helped it report record quarterly revenue for the last 3 months of 2021,” said Adam Vettes, an analyst at investment network eToro.

Alphabet shares were trading 10 percent higher at $3040 a share in Wednesday’s premarket, and are down 4.7 percent this year after falling along with other tech stocks amid the prospect of an interest rate hike.

Trading in the company’s shares closed Tuesday at $2757.57, and if you calculate the split, each new share would be worth about $138. Each existing shareholder would receive 19 additional shares for every one share they own, and the number of shares outstanding would increase from 663.7 million to more than 13 billion.

Stock splits are usually undertaken when shares are trading at prices above hundreds of dollars apiece, and usually carry no economic value to the company. It simply lowers the price of the stock, making it more affordable.

The move also opens the door for Alphabet to be included in the benchmark Dow Jones Industrial Average.