In Q1 results, Google proposes 2-for-1 split of stock
Google provided their first quarter results yesterday. The summary states how revenues have increased over the past quarter while operating expenses have only slightly increased. The bad news seems to be that the Cost-Per-Click value has decreased 12%, spelling a little bad news for long term growth if this is a trend and even bringing on more partners to its AdSense program in the short term if other companies are able to beat this and it is not an industry-wide trend.
The bigger news with this first quarter results comes from the Board of Directors approving a stock dividend proposal as a 2-to-1 split. In a Founders’ Letter from Sergey Brin and Larry Page, the stock split is detailed to discuss the new class of stock being created. Non-voting Class C shares will be created and current stockholders will receive one share of Class C for each share of Class A or Class B common stock they hold. The class A shares will continue under GOOG on NASDAQ while a new ticker symbol will be created for the Class C. Read the postscript at the end of the Founders’ Letter for all the details.
In other tech stock related news, Adobe has announced a plan to repurchase $2.0 billion of their own stock.