by winston » Fri Aug 21, 2015 5:36 pm
not vested
Earnings Season Winners — Google (GOOG, GOOGL)
Market Capitalization: $460 billion
Though reporting revenues that were in line with estimates at $17.72 billion, earnings per share absolutely crushed estimates, coming in at $6.99 vs. expectations for $6.70.
New Google CFO Ruth Porat was able to rein in costs by cutting back on traffic acquisition costs, boosting the bottom line and giving Wall Street a reason to believe in Google (GOOG, GOOGL).
GOOG stock responded by immediately jumping 12% in after-hours trading.
But Google wasn’t done just yet. After its blowout earnings, the folks in Mountain View decided to undergo a complete corporate restructuring, creating a parent company named Alphabet that will hold two separate divisions, Google (with its traditional search business, Maps, Apps, Youtube, and Android) and then everything else.
Calico, Google Ventures, Google Capital, Nest, Google X, and Fiber will all operate separately from the core Google business.
Investors — hopeful that the new structures will encourage innovation, encourage M&A activity, and provide more insight into the health of Google’s core business — bought GOOG stock in droves, adding $17 billion to Google’s market cap overnight.
Source: Investor Place
It's all about "how much you made when you were right" & "how little you lost when you were wrong"