Ruth Porat debuts as Google’s first female CFO
Google (GOOG) has appointed Ruth Porat, one of the most powerful banking executives, as its new CFO (chief financial officer). Porat took the lead as she addressed investors during Google’s second quarter earnings call.
Analysts have speculated that the move is an effort to restore investors’ confidence. Google shares have dropped 9% on the S&P 500 index in the last 12 months through June 2015. In comparison, competitors Facebook (FB), Amazon (AMZN), and Apple (AAPL) reported share price increases of 32%, 32%, and 26%, respectively.
Prior to joining Google, Porat served as CFO of Morgan Stanley (MS) for five years. She was responsible for helping Morgan Stanley recover from the financial crisis. Known for her ability to handle regulators and investors, Porat is expected to boost Google’s credibility on Wall Street.
Positive changes are expected
Analysts expect positive changes under Porat’s leadership. The changes should help Google tackle issues such as decreasing ad prices, flatlined search advertising business, and increasing competition from competitors like Facebook, Amazon, and Apple. These competitors are also gearing up for their second quarter earnings release scheduled in the second half of July. Analysts are expecting positive results for these three leading technology companies.
To get diversified exposure to Google, you can invest in the PowerShares QQQ ETF, Series 1 (QQQ). QQQ invests about 3.7% of its holdings in Google.