Google's fundamental business and portfolio of moonshot projects will remain the same when it changes its name to Alphabet, but investors are rallying around the prospect of getting a more detailed view of the tech giant's business and how it makes money, analysts said Tuesday.
Shares of Google Class C stock were up more than 4 percent Tuesday morning, a day after the company announced it would overhaul its operating structure and undergo the name change.
Markets are responding to the prospect of greater balance-sheet accountability and the chance that Alphabet will spend slightly less money on speculative endeavors, Tigress Financial Feinseth Partners CIO Ivan Feinseth said before the start of trading Tuesday.
"They'll report line items for advertising revenue, search revenue, YouTube revenue. So you'll be able to have more granularity in their different business lines to see where the real growth is and where the real drivers are," Feinseth told CNBC's "Squawk Box."
Investors are essentially saying they want greater transparency into capital spending, he added. That sentiment is already reflected in shareholder approval following Google's latest earnings report under new Chief Financial Officer and former Morgan Stanley executive Ruth Porat, he said.
Nomura senior analyst Anthony DiClemente said the bullishness among investors was not simply a matter of over-rewarding Google for sharing information it had previously obscured. Instead, the positive sentiment is part of a broader theme of capital management Porat.
That theme encompasses greater care for resource allocation, keeping a lid on headcount and improving margins, he told "Squawk Box."
Google announced Monday it would restructure its business as a collection of companies under the banner of Alphabet. The largest subsidiary under the new company name will be the core Google search and advertising business.
Android, Maps, and YouTube will also remain under the umbrella of Google.