One Reason Google (GOOG) Stock Is Rising Today

Google (GOOG) introduced a new cloud storage service for users to store data and access it quicker compared to other services.

By Kurumi Fukushima , Mar 11, 2015 1:43 PM EDT

NEW YORK (TheStreet) -- Shares of Google (GOOG) - Get Report are rising, up 0.32% to $556.80 in afternoon trading Wednesday, as the company announced the launch of Storage Nearline, its cloud storage service for users to store "cold data" and access it quicker compared to traditional services, Reuters reports.

The service rivals Amazon.com's (AMZN) - Get ReportGlacier, which is similarly priced, but takes about three to five hours to prepare data for download.

Storage Nearline allows users to access stored data in about three seconds, while charging them 1 cent per gigabyte of data at rest.

Google noted that data storage providers including Symantec (SYMC) - Get Report, NetApp (NTAP) - Get Report, and Iron Mountain (IRM) - Get Report are all partners for the new service.

Separately, Google revealed in a filing late yesterday that CFO Patrick Pichette informed the company of his intent to retire after working seven years for the technology giant.

The Mountain View, CA-based search engine focuses its business around search, advertising, operating systems and platforms, enterprise, and hardware products.

Insight from TheStreet's Research Team:

Google is a core holding of Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. During the most recent weekly roundup, this is what Jim Cramer, Portfolio Manager and Jack Mohr, Director of Research - Action Alerts PLUS had to say about the stock:

Shares had a stellar week following a crucial upgrade and a bevy of positive analyst commentary. On Monday, Bank of America Merrill Lynch upgraded Google to a buy (with a $650 price target) predicated on several points.

The first was early signs of renewed product momentum (Google I/O in May might be more impactful than last year). Second was accelerating gross profit growth in the fourth quarter and the opportunity for upside in the second half of the year with app search ads. Third, was low street earnings estimates and, finally, the attractive multiple vs. the S&P 500 (8% premium vs. 22% average).

We continue to see great value in Google shares at 18.5x forward estimates, slightly below historical with double- digit earnings and revenue growth and industry dominance. We now look for any news about its cash hoard and whether it will announce a distribution of some sort -- something hinted at on the 4Q call. Our target is $600.