NEW YORK ( TheStreet) -- With Google (GOOG - Get Report) co-founder Larry Page taking over the role of CEO from Eric Schmidt this week, investors wait eagerly to see what changes are in store for the search giant -- and what the long-term implications for its stock are.
Page's main order of business, according to reports, is to run the Mountain View, Calif.-based Google less like a bureaucracy, and more like a start-up to speed up innovation.
|Larry Page has replaced Eric Schmidt as Google's CEO.|
Google has faced criticism that it operates too slowly and can no longer compete with nimble Silicon Valley companies like Facebook.
Page is also taking over as Google continues to intensify its search to diversify its revenue stream outside of its traditional search advertising business -- where it generates 90% of its revenue -- into areas like display advertising and mobile.Page is likely to support this initiative, as well as other long-term projects like its effort to scan every book in the world and its experiments with driver-less car technology, The Wall Street Journal reported. Some analysts said Page's new appointment will reinvigorate Google, whose stock price has barely moved in the last year. Shares of Google have increased just 2.99% over the past 12 months. "We like the idea of Larry Page becoming CEO of Google given his passion for his company, respect within the engineering community and most important, his ability to relate to entrepreneurs in a rapid growth environment," Deutsche Bank analyst Jeetil Patel wrote in a research note after the January announcement of Page's new role. But while Page could usher in a new wave of innovation at Google, there's some concern about his ability to manage the company. Page, who previously served as CEO from 1998 - 2001, will helm a far different Google today than the company he oversaw back then. "It is a much different task managing a public company with 24,400 employees than a privately held firm with 200," said BGC Partners analyst Collin Gillis in a research note. What do you think?
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