Don’t you love how Google confounded the amateur stock pundits today? The drumbeat was relentless about the amount of GOOG stock coming out of lockup — 177-million shares, nearly double what has come out since last summer’s IPO, and roughly the same number of shares as the total float of Hasbro or Goodyear — and how that would drive the price down.
Well, as you can see at right, it didn’t happen. Google shares actually ended the trading day above where it closed last Friday.
So, was the lockup’s end actually good news? No, it was short-term bad for shareholders, with more float meaning more selling pressure on the stock. But as is always the case, the news has been being discounted into Google’s price for a long time, probably more than a month at this point. By the time the actual date arrived it really didn’t matter any more, at least not in the sense of being bad news — it was, as traders like to say, already baked into the stock.