I honestly don't understand why the stock price would increase with this. It seems to me that all they did was add a layer of bureaucracy (or just shuffled it around).
It gives the market more financial transparency into how the core business is doing, w/o merging in the effects of these other projects. More transparency means more accurate pricing, and thus a more reliable investment
I heard the opposite. That they won't have to disclose how google is doing if they don't want. Just as Amazon doesn't have to release AWS numbers.
But shouldn't 17% of the trading volume of a massive company like Google be much larger than 100% of the trading volume of most companies, and therefore very accurate? Isn't this plenty of liquidity to make money if the prices was predictably off?
No, because the AH session uses a separate order book, it has much less liquidity. You can see one 1000-share lot move the stock $5. During the normal session, it would've moved it under $1, possibly just pennies. It's possible much of this move was short sellers who chose to cover AH today. It's also possible that there's a lot of smart money buying AH and we'll see it grind higher tomorrow.
Sorry, I still don't understand! I can imagine that AH trading would have a tenth of liquidity in the sense that a 1000-share lot in AH trading moves the stock $5 but in normal hours it's just 50 cents. But if stock A has 100 times the trading volume as stock B, wouldn't AH trading of stock A be as liquid, or more liquid, as normal trading of stock B?