Tuesday, August 31, 2004
GOOG Faces Major Test In Just Two Days
SAP Info says that Google's stock price will be tested Thursday, when the first "lock-up" period ends. The lock-up period, which normally lasts 180 days, prevents certain insider investors from dumping their shares so soon after an IPO. Google decided to do several lock-up periods, to avoid releasing 270 million shares at once, so instead we see 4.6 million new Google shares Thursday, an unprecedented 15 days after going public. Google has been breaking all the rules, so we'll have to see if avoiding one bad day by creating a lot of smaller bad days pays off. It may not, since two venture capitalist firms already want out.