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Is Google stock surge justified on Alphabet soup?

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Google shares at the open of trading Tuesday were poised to close at a new all time high as analyst after Wall Street analyst cheered its reorganization into a conglomerate named Alphabet.

Just imagine if it actually made a change in its capital allocation, balance sheet, management, or dividend policy.

At least 19 analysts put out updates since the announcement Monday evening and it appears just one firm was critical about the reorganization: a small shop named Pivotal Research Group.

RBC Capital Markets' Mark Mahaney, who is the top ranked analyst on the stock according to TipRanks.com, sounded a bit skeptical on CNBC, saying:

"We look at this as more of a modest catalyst than a major catalyst...I don't think there's anything we heard last night or read last night that indicated cash back in the form of a dividend or buybacks is more likely."

Google shares traded off their highs as the morning continued.

Pivotal's Brian Wieser, a top-ranked Google analyst as well despite his firm's size, wrote this in his note:

"Google is effectively changing its name to Alphabet and announcing that it will introduce a distinct reporting segment for many of its emerging ventures beginning with the fourth quarter. On balance, incremental transparency into Google's business is positive, although we remain uncertain as to exactly how much transparency will be provided, and therefore remain cautious on the degree to which this news should be viewed favorably."

Wieser's suspicion may have been confirmed later by Google's SEC filing, which promised what seems to be a limited breakout of results:

"The new legal and operating structure will be introduced in phases over the coming months and when finalized, Google anticipates that it will result in two reportable segments for financial reporting purposes, with the Google business presented separately from other Alphabet businesses taken as a whole."

Google, YTD

Source: FactSet

Google shares are up 25 percent in 2015, but just about all of that gain came last month.

Like Monday's promise of greater transparency, Google's gains this year are largely in part because of promises by new CFO Ruth Porat, formerly of Morgan Stanley, to keep the company's costs under control.

She said in prepared remarks on the earnings conference call last month that she would take "great care regarding resource allocation."

This is a big rally based just on words for Google. When the company starts operating under this new structure in the fourth quarter, investors may be looking for action before buying more.

--With reporting by Tae Kim and Tom DiChristopher

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