Buyers remorse explains Google's restructuring. Larry Page and Sergey Brin, Google's co-Founders, have announced a radical restructuring last August 10.
After the stock markets closed last August 10, Google's co-founders, Larry Page and Sergey Brin, announced a profound restructuring which places its other properties under a new parent company, the Alphabet Inc.
As reported by Financial Times, Google has invested in a plethora of long term speculative businesses along with the company's highly profitable operation. These contain ventures that are pursuing research in to driverless cars and even treatments that may permit humans to live forever.
From the start that Google listed its shares on the stock market, Larry Page and Sergey Brin have wrote to investors telling them it would never be a "conventional company".
Investors cannot claim that they were not warned, however, investors' awareness from ventilating concerns have not stopped. The risk of making big losses or divert the top group from its core business may occur.
According to The Guardian, Google has come under pressure as its founders have used the vast success of its search engine to bet for riskier options on smart household devices, autonomous cars, cutting-edge medical research, and internet-delivering balloons. The major restructuring of Google will seemingly give investors greater discerment into how the money is being consumed.
Investors are anxious of technologically innovative venture's product, which can totally deprive the capital that is required to secure its success. In contrast, investors are also hopeful that this move will mark a new generation of transparency at Google, which has kept a firm grasp on the financials of Android, YouTube, and other properties.
For now, it remains uncertain what additional information investors will get from Google's restructuring. Investors will have to wait until early next year when Alphabet reports earnings for the first time. Google is not going to change into a normal business except if the founders want it.
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