Yesterday, Google (GOOGL - Analyst Report) announced that it will be restructuring its business. Google’s tickers won’t change, but the name of the company will. The new hierarchy will place Alphabet as the parent company of Google. The goal of this restructuring is to separate core business components from the rest of the company’s businesses.
 
The new Google will be smaller, but it will still be biggest component of Alphabet. Alphabet will be lead by current CEO Larry Page and current president Sergey Brin. The CEO of the new Google will be Sundar Pichai, who is held in high regard by Larry Page. The new Google will be focused on maps, apps, YouTube, Chrome, Android, and search. Other components of Alphabet will include smaller companies such as Calico, Fiber, Nest, and Google Capital.      

So what do investors think about all this? Some are skeptical, others appreciate the transparency which will be created, and others are enthralled by the $27 billion market cap boost Google received after the announcement. Here are some of the things that the optimists had to say about Alphabet:

Is #Alphabet a good idea for $GOOGL ?? I think it is. It's starting to sound a bit like #berkshirehathaway

— Mike Rochac (@mikerochac) August 11, 2015

Brilliant, brilliant strategy. $GOOG Berkshire Hathaway for this millenium. And the name (Alphabet) is perfect, too. http://t.co/689oGgiPdh

— David Miller (@AlpineBV_Miller) August 10, 2015

With Alphabet, Google's Larry Page is trying to be the Warren Buffett of tech. http://t.co/ctvJt5Xcvd $GOOG $GOOGL pic.twitter.com/4t7FxxbtlY

— Jeremy C. Owens (@jowens510) August 11, 2015

Cramer's Charitable Trust: Google's $GOOGL Alphabet Boosts Transparency http://t.co/3h4DdGmqmh

— Sebastian Silva (@AtSilvaStreet) August 11, 2015

@StockTwits $GOOGL smart move made, will raise the multiple. Get long and stay long #Alphabet.

— CaeX (@CaeXFinance) August 11, 2015

they just magically increased the amount of equity available to #startups ... of course it is good for all #tech $GOOGL #Alphabet

— Mark Friederichs (@MarketFried) August 11, 2015
 

Others are more skeptical about if the sudden boost to the market cap is sustainable. Some are even wondering why there isn’t more of a skeptic angle in any news stories covering Google’s restructuring.

$GOOGL renaming itself Alphabet added $20 billion to its market cap, which is enough to buy...

— Tae Kim (@firstadopter) August 10, 2015

Shocking to me that investors, analysts and pundits are not more skeptical of the Alphabet thingy from $GOOGL https://t.co/Qx0JxJ9zql

— Dan Nathan (@RiskReversal) August 11, 2015

2) Alphabet is proof that in the world of technology, there is such a thing called "too big to succeed." $GOOG

— Om Malik (@om) August 10, 2015

Here's the alphabet that $GOOGL can chime to: B A N K R U P T http://t.co/6GtxeYO85j

— SATISH KUMAR (@satish_kumar21) August 11, 2015

Bottom Line    

All in all, Alphabet seems like a step in the right direction for Google. It will create a great deal of transparency, meaning that judgments should be easier to make on the stock. Rumor has it that appointing Sundar Pichai as the new Google’s CEO has prevented him from becoming Twitter’s (TWTR - Analyst Report) CEO. Close to a dozen higher ups at Google are being promoted to CEO’s of companies within Alphabet. This will put specialists at the helm of these subsidiaries, and will allow Larry and Sergey to govern from above as is necessary.

Google (GOOGL - Analyst Report) is a Zacks Rank #2 (Buy). 24 analysts have revised their earnings estimates this quarter, with 20 of them revising their projections upwards. In the same time frame, 4 analysts have revised their estimates lower. Google reports its earnings on 10/15/15.