By Benjamin Pimentel, MarketWatch
SAN FRANCISCO (MarketWatch) -- Two classes of Google Inc. shares
created after a 2-for-1 stock split rose sharply as they began
trading Thursday.
The new class of non-voting Class C shares(GOOG) trading under
"GOOG" climbed 2.5% to $580.89, while Class A shares (GOOGL)
trading under the new ticker "GOOGL" gained 2.4% to $582.41.
Shareholders received the two shares for every Class A stock they
owned.
Google implemented the stock split, which became official after
Wednesday's closing bell, as a way to make it easier for founders
Larry Page and Sergey Brin maintain control of the Internet
giant.
At least two analysts reaffirmed a buy rating on the stock given
Google's dominant market position and robust financials.
"We remain positive on shares of Google given our expectations
for continued search strength, strong mobile position, and an
attractive valuation," Raymond James analyst Aaron Kessler told
clients in a note in which he kept an outperform rating. Kessler
set a price target of $660.
Topeka Capital's Victor Anthony also maintained an outperform
rating on Google, telling clients, "While there is no change to net
income from the share split, we are increasing pro-forma earnings
estimates to reflect the move of Motorola operating losses to
discontinued operations. In addition, we are doubling the number of
shares outstanding due to the split."
Anthony set his 2014 earnings per share estimate at $27.30 and
his 2015 earnings per share target at $30.94. He maintained an
outperform rating with a split-adjusted $675 price target.
The tech sector also got a boost from shares of Pandora Media
(P), which were up 2% after the Internet radio company reported
stronger listener gains in March.
But the sector was weighed down by shares of Twitter Inc. (TWTR)
, which were down nearly 2%, and Microsoft Corp.(MSFT) , which was
off 1%. Hewlett-Packard (HPQ) and Apple Inc. (AAPL) were each down
a fraction.
The Nasdaq Composite Index(RIXF) was off 0.2% at 4,266. The
Morgan Stanley High Tech 35 Index (MSH) shed a fraction, while the
Philadelphia Semiconductor Index (SOX) climbed nearly 1%.
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