Newly split Google stocks climb on first day

2 classes of the company's shares begin trading and see small gains.

By MSN Money Partner Apr 3, 2014 11:57AM
Credit: © Paul Brown/Alamy
Caption: Google Headquarters in Mountain View, Silicon Valley, Calif.By Benjamin Pimentel, MarketWatch

Two classes of Google shares created after a 2-for-1 stock split rose sharply as they began trading Thursday.


The new class of non-voting Class C shares (GOOG) trading under "GOOG" climbed 2.5 percent to $580.89, while Class A shares (GOOGL) trading under the new ticker "GOOGL" gained 2.4 percent to $582.41. 


Shareholders received the two shares for every Class A stock they owned.


Google implemented the stock split, which became official after Wednesday's closing bell, as a way to make it easier for founders Larry Page and Sergey Brin maintain control of the Internet giant.


At least two analysts reaffirmed a buy rating on the stock given Google's dominant market position and robust financials.


"We remain positive on shares of Google given our expectations for continued search strength, strong mobile position, and an attractive valuation," Raymond James analyst Aaron Kessler told clients in a note in which he kept an outperform rating. Kessler set a price target of $660.


Topeka Capital's Victor Anthony also maintained an outperform rating on Google, telling clients, "While there is no change to net income from the share split, we are increasing pro-forma earnings estimates to reflect the move of Motorola operating losses to discontinued operations. In addition, we are doubling the number of shares outstanding due to the split."


Anthony set his 2014 earnings per share estimate at $27.30 and his 2015 earnings per share target at $30.94. He maintained an outperform rating with a split-adjusted $675 price target.


The tech sector also got a boost from shares of Pandora Media (P), which were up 2 percent after the Internet radio company reported stronger listener gains in March.


But the sector was weighed down by shares of Twitter (TWTR), which were down nearly 2 percent, and Microsoft (MSFT), which was off 1 percent. Hewlett-Packard (HPQ) and Apple (AAPL) were each down a fraction. (Microsoft owns and publishes Top Stocks, an MSN Money site.)


The Nasdaq Composite Index ($COMPX) was off 0.2 percent at 4,266. The Morgan Stanley High Tech 35 Index (MSH) shed a fraction, while the Philadelphia Semiconductor Index (SOX) climbed nearly 1 percent.


More from MarketWatch

0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

120
120 rated 1
268
268 rated 2
439
439 rated 3
709
709 rated 4
641
641 rated 5
609
609 rated 6
640
640 rated 7
516
516 rated 8
272
272 rated 9
152
152 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
EXCEXELON CORPORATION10
TAT&T Inc9
VZVERIZON COMMUNICATIONS8
CTLCENTURYLINK Inc8
AAPLAPPLE Inc10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.