Seeking Alpha

Google now +4.4% AH; stock split to finally take place

  • After initially treading water in response to its Q4 report, Google (GOOG) has jumped to new highs. A likely factor: The company has announced a long-delayed stock split that (by creating "Class C" shares with no voting power) will further cement Larry Page, Sergey Brin, and Eric Schmidt's control over the company is set to finally take place.
  • Following the split (set for April 2), Google's newly-created Class C shares will trade under the company's present symbol, while currently-traded Class A shares will trade under the symbol GOOGL.
  • Google's CC (live blog) was predictably upbeat, and predictably short on specifics. Sales chief Nikesh Arora claims Google's closely-watched Enhanced Campaigns (creates joint PC/tablet search ad campaigns) is yielding strong ROIs, but doesn't provide any numbers. He also talked up YouTube's efforts to partner with Nielsen (NLSN) to measure video ad campaigns for marketers.
  • Larry Page, who mentioned in October he wouldn't be joining some earnings calls, didn't join this one.
  • Q4 results, details
Comments (6)
  • hko2012
    , contributor
    Comments (238) | Send Message
     
    The market realizes that GOOG doesn't have competition, neither in search engines nor mobile operating systems.
    30 Jan, 06:10 PM Reply Like
  • tomlos
    , contributor
    Comments (1098) | Send Message
     
    So they are splitting the common stock?
    30 Jan, 06:16 PM Reply Like
  • agnosticaphid
    , contributor
    Comments (2) | Send Message
     
    The idea that the non-voting stock will be priced about the same as the voting stock is silly. Just check out NYSE:HEI vs NYSE:HEI.A .
    30 Jan, 07:26 PM Reply Like
  • ebeuu
    , contributor
    Comments (339) | Send Message
     
    There are more individuals who will pull the trigger for stock at < $1000/share.
    They get non-voting shares, too. All the advantages of the share price and none of the ability to effect changes at the top. (if you have a billion dollars to initiate positions before April.
    30 Jan, 08:24 PM Reply Like
  • glacier32
    , contributor
    Comments (22) | Send Message
     
    Without spending a single penny, the founders privatized the company.
    30 Jan, 10:23 PM Reply Like
  • BlueSeas
    , contributor
    Comments (147) | Send Message
     
    Just the same as BRK.a BRK.b has been for decades. Many individual players appear to be more comfortable buying 10 shares of non-voting at $100/share then 1 share at $1000 voting. In small accounts it does give more flexibility in exchange for virtually useless votes.
    31 Jan, 06:48 AM Reply Like
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