Well, today is the big day for Google shareholders. I just got the new shares dropped into my account. I'm showing a pre-market on GOOG at $565.16 a share. GOOGL looks set to open at $571 at the moment. The most ironic thing I'm seeing so far is that GOOG is reading down 49.79% from yesterday's close. I wonder if it's going to print like that all day? It almost stands to reason that it would, being that it's a new class of shares backed into an existing symbol.
I thought it might be fun to see what the consensus on WSO was about today's close. It seems clear so far that each class of shares is going to open around $570, but where are they going to close? As an owner, I'd love to see the stock cross $600 today, but that might be wishful thinking. It's hard to imagine that it would sell off today, though (reason being: if you were going to sell you probably would have done it yesterday and not put yourself through the rigamarole of a complicated stock split).
Here's the deal: Tell me where you think each class of shares will close today and why, and the monkey closest to the pin gets a Silver Banana and a special shout-out next week on Monday @Mentions. I'll go first: GOOG (the new Class C non-voting shares) closes at $587.50, and GOOGL (the high-octane voting stock) closes at $596, both due to the emotional post-split pop.
Your turn.
GOOG: $579.75 GOOGL: $601.25
This is kind of a strange situation. Existing shareholders are getting hosed in this deal. You might gain some asset value however the company essentially said well all of you plebeians out there well we are cutting your say in half. If I was a stake holder in Google I would have told them to go fuck themselves and dumped my shares before the split. This dual class system that is gaining popularity in the technology space is something to watch out for. I have a feeling there will be a lot of investors getting cold water poured on them in the future when small groups of people have absolute directional control over a company to do what ever they want with shareholder value.
I'm not saying that tiered share systems are bad or good, just saying its something to watch out for and in this case a bit disingenuous on the part of Google to do this. If you set up your shares that way from the get go, everyone knows what they are buying. If you cut their feet out from under them 10 years later and just change the rules on people who paid for voting shares, well that's bullshit.
I agree on principle; it's messed up. Other than some capital allocation decisions on GOOG's part (Moto deal), I'm pretty impressed with Larry & Co as a management team, but it is a bit jarring that they're blatantly telling minority shareholders to go fuck themselves. However, the pre-split GOOG stock barely had any voting rights as it is, no? The Class B stock had something like 60% of voting rights.
If I remember correctly, you needed a massive stake (enough to file a 13-d) to even have any resemble of voting power.
I don't really care enough to look up the pre split structure. I do know they had a multi-class system however the principal is the same they are taking shares that had voting rights (regardless of how small) and cutting their votes out. They could have just split the shares, it really doesn't matter how much the diluted the shares because everyone would still have the same reduced voting power. But to just ax it in half is total bull shit, they have essentially restructured the class system and gave no compensation for it. I won't be at all surprised if they end up facing a massive class action lawsuit over this.
@"Edmundo Braverman" like you, I think there is going to be some emotional bid up, but I'm a bit more conservative in my ending price for the A shares...
GOOG: $588.50 GOOGL: $590.25
Almost there...
Bought some shares, would like to buy more, but i'm a poor bastard.
GOOG: $589 GOOGL: $590
GOOG:579.37 GOOGL: 587.96
Shit happens.
GOOGL - $571.50 GOOG - $569.80
I don't think they'll move much...skeptical...
Love the guys that jump into the prediction with an hour to go.
This. What a bunch of shitheels, lol.
Looks like I am going to be WAY, WAY, WAY off on GOOGL, but I didn't go low enough on GOOG. Bummer. That's why we make the trades.
GOOG: 567.32 GOOGL: 573.13
If nasdaq wasn't flushed down the toilet today the shares would end up at ~590$
u guys having problem sitting down after closing bell?
Brutal.
Libero sapiente totam itaque et. Ut qui et deleniti aut beatae nam. Molestias autem doloribus nihil id sapiente. Quis dolores et ea doloremque illo voluptatem. Consectetur laudantium ullam iure in consequatur voluptas. Iste laboriosam dolor voluptates libero.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...