Google Stands Firm Against Stock Split

Google held its annual shareholder meeting last Thursday, and the AP reports that Eric Schmidt reiterated Google has no intention to issue a stock split now or anytime in the future. The no-split stand has been around as long as Google’s stock has, with the company intending to keep a high-priced stock, much like Berkshire Hathaway does, in order to avoid instability.
Of course, Google’s stock hasn’t been doing well for a while (it’s up one dollar, or .23%, in the last 16 months), so some hoped Google would change its mind. Considering how high Google is valued as a result of its stock (market cap of $145 billion), don’t be surprised if the stock doesn’t move until the company gets closer to its well-deserved high-flying expectations. Microsoft stock is currently about 6 times earnings, while Google’s is 14 times, so you can see the gap until Google […]

Original post by Nathan Weinberg