showed this week that it’s learning how to play the game.
The company announced late Wednesday that it will sell as much as 5.3 million shares worth about $2 billion ahead of its inclusion in the S&P 500 Friday night. Google shares lost 1.7% Thursday on the news, but the move appears to be a shrewd one by Google to curry favor with Wall Street, something the company hasn’t done much of in its brief time as a public company.
Google said in an SEC filing that the shares “will be offered primarily to index funds whose portfolios are primarily based on stocks included in the S&P Index. These index funds may be required to purchase shares of our Class A common stock as a result of the inclusion of our Class A common stock in the S&P 500 Index.”
The move will make it easier for index funds to buy Google shares without having to pay all the premium that usually occurs between the announcement that a stock will be added to the index and the day it joins.
With $8 billion in cash on hand already, the move raised speculation that Google might be planning to buy a company like Baidu.com
, which surged 6.5% Thursday. But it just might be that the company is simply becoming a little more savvy.
Tech stocks posted modest gains Thursday, but blue chips fell on fear of inflation and rising interest rates.
The Nasdaq rose 3 to 2340, the S&P 500 lost 2 to 1300, and the Dow fell 65 to 11,150. Volume rose to 2.26 billion shares on the NYSE, but declined to 2.19 billion on the Nasdaq. Decliners led 18-14 on the NYSE, while advancers led by a handful of shares on the Nasdaq. Downside volume was 51% on the NYSE, and 45% on the Nasdaq. New highs-new lows were 258-54 on the NYSE, and 235-28 on the Nasdaq.
gained 5% on a bullish forecast.
gained 8% on its results.
tumbled 12% after cutting guidance.