Has anyone else noticed that GOOGL (class A shares) has outperformed GOOG (class C) every day since the spinoff? What’s going on here? Are insiders just selling off class C shares to concentrate their voting rights?
I’d expect a slight outperformance due to the voting priviledges of GOOGL but the magnitude of the gap warrants some suspicion…
Well, from a fundamental perspective, one would expect GOOGL to be worth GOOG + value of voting rights. However, the spread has been growing over time. So either, the value of voting rights is changing, or there is some technical reason. Or something else? Besides the magnitude of the gap, the consistency of outperformance is weird; GOOGL has outperformed GOOG every single day since the spin off.
Edit: GOOGL is underperforming by 3bp - so might break the trend today…
Definitely weird, wouldn’t call shenanigans just yet though.
Should go the way of Hong Kong and not allow seperate share classes on the exchange. Actually, i don’t believe that. If i don’t like it, i don’t have to own the issue.
I think it has to do with this:
http://www.sec.gov/Archives/edgar/data/1288776/000128877613000040/memorandumofunderstanding.htm
…I’m not in it though so I don’t really understand the pricing.