Google Announces Positive Q1 Earnings & Stock Split: Stock Closes Up 2.37%

First quarter earnings for Google in 2012 inspire optimism for investors, as they brought in 8.14 billion dollars in revenue for the quarter and a 61% increase in net income. The growth is on course with that of Q4 of 2011, when they saw a 25% increase from the year before. The company’s total cash now equals an impressive 49.3 billion dollars.

The 2.89 billion dollar year-on-year earnings report has sparked the company to create a two-for-one stock split, effectively cutting the stock price in half. This will function as a type of dividend for current stock holders, and will aid in the co-founders’ wish to maintain leadership control over the company’s stock. The existing shareholders will get one share of a new Class C stock for every share they own now. These new Class C stocks will have no voting power.

Google’s co-founders Larry Page and Sergey Brin say that the change is necessary to maintain their voting power, and that not having that control would impede their “aspirations for Google over the very long term.” Page also speaks of the company’s future, “Google is a large company now so we’ll achieve more and do it faster if we approach life with the passion and the soul of a startup.”

It was not specified when the stock spit will occur, but it will most likely happen after June when it will be allowed to be approved by shareholders. The stock closed at 651.01, up 15.05 (2.37%) for the day.

“We are still at the very early stages of what technology can do to improve people’s lives and we have enormous opportunities ahead.” — Larry Page

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