What The Street Is Expecting From Ruth Porat As Google's New CFO
Ivan Feinseth, Tigress Financial Partners, was on CNBC recently to discuss what Porat can do with the cash pile Google is sitting on.
A Lot Of Money To Manage
"Well, she has got a lot she can do," Feinseth said. "I mean, Google is a very acquisitive company. I mean, Google could have bought Time Warner Cable. I mean, Google is in the— laying out fiber; they want to be in the communication business. They are a communication company."
Feinseth continued, "She has close to $80 billion in cash and about $32 billion in we will call EBITDAR or cash flow. So, that's a lot of money to manage to invest in R&D, to use for acquisitions to build the company."
Google Has To Make Decisions
Feinseth was asked with Porat as the CFO will go for more acquisitions and share buybacks. He replied, "First of all, based on the amount of cash they have and the amount of cash flow, they have to invest in the company, investing in R&D and investing in acquisitions to grow the company."
He continued, "They also have to make decisions about dividend policy; they don't currently pay a dividend. Stock buybacks – hey have to make decisions on how are they going to turn this cash or create value for the shareholder."
Don't Need To Acquire Twitter
On whether, as a shareholder of Google, he will be happy if the company acquires Twitter, Feinseth said, "We are Neutral on Twitter and I don't think it would be that much of an incremental increase, because they already do compete with Twitter. And I think they have as good, if not better, brand name than Twitter."
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