Google’s new openness with Wall Street paying off in early returns

During the past three months, Google shares on the stock market have jumped about 15% while the broader Nasdaq Composite Index has sunk around 8%. One of the factors analysts point to as helping Google buck the overall trend are a series of new “Office Hours” briefings the company’s new CFO, Ruth Porat, has been holding with analysts. The sessions, which only last about 15-30 minutes, give Google an opportunity to provide additional insight into their business and more importantly, point to a new level of transparency for the company.

Ms. Porat joined Google this past May after working at Morgan Stanley. While the company itself ends up being more open, analysts point out that Mr. Porat in general has a more open personality than her predecessor. Already she shared more in her first conference call back in July than what has been the norm and she has met with shareholders in New York, Boston and London. The new briefings are called “Office Hours” and are one more tool that Ms. Porat brings to the table for Google. Mark Mahaney, and analyst with RBC Capital Markets notes that, “the company has made more effort with investors in just the last couple of months than they have in years.”

Ms. Porat does have to walk a fine line during the “Office Hours” sessions as communications like these have the potential to cross SEC regulations. Companies are not allowed to selectively disclose nonpublic information that is material in nature to analysts or market professionals. This means Ms. Porat is limited to repeating or clarifying information that was already publicly released.

source: The Wall Street Journal

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