MEXICO CITY (CNNExpansión) – Google shares up more than 4% on Tuesday after the company announced it is changing the structure of its operations with the creation Alphabet Inc, which is seen by analysts as an acknowledgment of the lack of transparency of their companies and projects, although it remains to be seen whether the company gives more details.
The titles advancing 45.03% to $ 689.85 on the stroke of 10.44 hours.
Analysts and investors have long sought more details on capital expenditures and cash flow from Google, as well as the financial performance of YouTube and the Android operating system.
Google said Monday it would separate into two firms would report results independently under a new conglomerate called Alphabet.
One will maintain its core business of search and online advertising and other new projects such as cars that run themselves and thermostats connected to the Internet made by their business Nest.
“This supports our view that Google has entered a new era of friendship with the shareholders,” said MKM Partners analyst Rob Sanderson, who has a “buy” the shares.
Still, Google did not say what details will be disclosed.
Analysts at JP Morgan said that more information could cause the market is more open to accepting Google heavy investments in businesses that are not major.
Several analysts compared the extent of Google becoming separate entities reporting results with Amazon’s decision to begin reporting revenue from its cloud computing unit.
Amazon shares have risen about a third since the company first broke down their business results cloud in April.
Of 50 analysts covering Google, 43 have a rating of “buy” or better for titles and seven “hold”. The average price target for shares is $ 750.
With information from Reuters
No comments:
Post a Comment