Wednesday, April 2, 2014

Stock Split Could Doom Google


Summary
  • Stock split raises corporate governance issues.
  • Stock could lose momentum with investors inclined to trim shares after long run.
  • Unforeseen threats could hit the stock similar to MasterCard.
Next week, Google (GOOG) plans to finally split its stock nearly two years after announcing the original plan. After a relentless run beyond $1,000, the stock is actually being split for an unrelated reason that brings up corporate governance concerns.

Even the market cap reaching $376 billion and annual sales expected to reach over $70 billion this year, Google remains a fast growing technology leader. The company still obtains the majority of revenue from online search even though it continues to attempt diversification into mobile operating software and wearable devices amongst other far-flung operations.

Read the full article at Seeking Alpha.


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