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Google Shares Spike 6% After ‘Alphabet’ Restructuring
- thesimpsons1022 11y agoSo? It's after hours trading. Its silly to pretend that it's a real 6 percent boost. Let's see the price tomorrow. Thats when you can say this is a legitimate spike.
- deleted 11y ago[deleted]
- kelnos 11y agoAnd regardless, even if there is an impressive increase in regular trading, I don't see why that's surprising... this would appear, at least on the surface (which is what Wall Street reacts to when you consider the scale of a day), to be a good move.
- themartorana 11y agoWasn't it up over 4% before trading closed?
- joshu 11y agoYes. The relatively small trading volume is meaningless. Are there any studies on after-hours movement vs gap return?
- encoderer 11y agoI wouldn't call it meaningless but it's absolutely different than a spike during the trading day. Nasdaq shows 315k shares having traded AH, about 17% of what traded during the normal session. I've seen gap-fill studies on big moves in general but never one specific to AH moves.
- jessriedel 11y agoBut shouldn't 17% of the trading volume of a massive company like Google be much larger than 100% of the trading volume of most companies, and therefore very accurate? Isn't this plenty of liquidity to make money if the prices was predictably off?
- encoderer 11y agoNo, because the AH session uses a separate order book, it has much less liquidity. You can see one 1000-share lot move the stock $5. During the normal session, it would've moved it under $1, possibly just pennies. It's possible much of this move was short sellers who chose to cover AH today. It's also possible that there's a lot of smart money buying AH and we'll see it grind higher tomorrow.
- jessriedel 11y agoSorry, I still don't understand! I can imagine that AH trading would have a tenth of liquidity in the sense that a 1000-share lot in AH trading moves the stock $5 but in normal hours it's just 50 cents. But if stock A has 100 times the trading volume as stock B, wouldn't AH trading of stock A be as liquid, or more liquid, as normal trading of stock B?
- nikmobi 11y agoI don't know much about stocks. Why is after hours different?
- ennuihenry 11y agoThe volume for after-hours trading is significantly lower as there are fewer exchanges open. 4PM ET is deemed the traditional end of the day for trading.
- iofj 11y agoAlso, most people can't trade after hours. So this price is artificial, in the sense that a lot of holders of Google stock wouldn't be able to sell at this 6% increased price.
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- RexRollman 11y agoI honestly don't understand why the stock price would increase with this. It seems to me that all they did was add a layer of bureaucracy (or just shuffled it around).
- jonlucc 11y agoI assume it signals that they will be investing more heavily in the non-Google portions of their umbrella. It also signals that they are going to keep Google as a very ad-focused company in their banner.
- irishcoffee 11y agoThe closest thing I can come up with is that the're modeling after companies like this: http://www.textron.com/ http://www.textron.com/ Textron owns Bell Helicoptor, and EZ:GO Golf Cart company, among ~12 others, but the stock is all Textron stock. I guess its kind of like internal diversification. I realize Google is a decently unique company, so I'm not sure exactly why they did what they did, but the model they jumped to seems common enough.
- encoderer 11y agoOr, Berkshire Hathaway
- nolite 11y agoIt gives the market more financial transparency into how the core business is doing, w/o merging in the effects of these other projects. More transparency means more accurate pricing, and thus a more reliable investment
- thesimpsons1022 11y agoI heard the opposite. That they won't have to disclose how google is doing if they don't want. Just as Amazon doesn't have to release AWS numbers.
- Const-me 11y ago
- RexRollman 11y agoI honestly don't understand why the stock price would increase with this. It seems to me that all they did was add a layer of bureaucracy (or just shuffled it around).
- pietaalpha 11y agohttps://www.google.com/finance?q=google&ei=KrHJVePTLcSXUOO9vfAG https://www.google.com/finance?q=google&ei=KrHJVePTLcSXUOO9v... is 0.19 % down ?