In this week, Sergey Brin and Larry Page had stepped down officially from their roles of management at the company which had been founded by them named Alphabet. Sundar Pichai is not going to have complete control of this company while Sergey and Larry are going to be in an advisory role at different times as they are going to retain the majority of the control. Alphabet is the company that is parent to Google and is also the parent company for a lot of smaller businesses in the addition to the search business of Google which are famous.
Reactions to this kind of a turn of events have been an interesting observation particularly the response of the community of finance. A lot of the analysts have praised this change as they had seen the spending of Alphabet being very high, specifically with Other Bets, the box in which the reports of Alphabet’s non-core activities are made. With the two co-founders now gone, it is being said that the resource waste may be brought into the line and is going to benefit the shareholders. The response of the stock market did also confirm this line of thought as the stocks of Alphabet going up by 1.9% as the news reached the markets.
There are counter-arguments though. At the very basic level, a few of the analysts have assumed that every bit of money that had been spent in Other Bets was simply a waste and no value had been created out of it. This is an approach that can be termed as being against innovation as it can completely ignore the achievements of Other Bets altogether.