Everyone is still digesting Google's big news on Monday, but one thing is clear: the market likes it.
In typical Google-style, the two founders of the search giant threw an unexpected curve-ball on Monday afternoon. In a post on the Official Google blog, CEO Larry Page announced that he was relinquishing the top role at Google in order to run a new entity called Alphabet, with Google co-founder Sergey Brin as its President.
The new Alphabet entity will serve as a holding company composed of Google Inc, which will include its flagship search and YouTube properties, plus Calico, its health research project, plus other subsidiaries that will house of the company’s other research and investment projects, including Fiber. The press and everyone else is still trying to sort through the implications but, so far, it appears investors like the news.
This comes after a ho-hum day in which Google was down around 0.25%.
The spike in the stock price likely reflects a vote of support for Google’s new CEO, Sundar Pichai, and for the implication that Google’s core operations will not be dragged down by the company’s “moonshot” projects, like Google Glass and Driverless Cars, which have tantalized tech geeks, but often frustrated investors.
To get a better idea of what this is all about, here are Page’s own words, from the intro to his blog post: