Investors eyeing the Google stock could look at the technology giant's new structure like a venture capitalist would a biotechnology portfolio, an analyst said.
"You'll take a look at where you see the potential and determine over what time period you'll see some of these different businesses that they're involved in generating capital," Heather Bellini said Wednesday, as shares of Google ticked up after a favorable note from her investment firm, Goldman Sachs.
"Or maybe they won't generate capital," she said on CNBC's "Squawk Alley." "But much like you might evaluate early stage, mid-stage biotech companies, you could look at the values you might assign on a venture-capital type basis."
Bellini highlighted how Google's new structure under umbrella company Alphabet, which separates "Google proper" from "everything else," could simplify investing in its various verticals.
Her comments come after Goldman Sachs upgraded Google's stock to their illustrious "conviction buy list" Wednesday morning. The stock rose more than 3 percent midday as the markets were trading up more than 0.6 percent. Google and other large-capitalization technology darlings led a surge in the overall technology sector, after it was crushed by volatility earlier in the week.
"We were hoping to get a better entry point to get in to the stock and we think we have that with the selloff we've seen over the past week or so," Bellini said. "The pullback just makes it a lot more attractive."
Google announced earlier this month it would separate its core businesses, like advertising, search and Android devices, from its more "far afield" products—including Google X, Fiber and Life Sciences. The new changes should help investors value Google's different investments, the way a venture capitalist might probe a start-up, she said.
"You're going to see a much cleaner picture of what the core operating margins look like at Google," Bellini said, "and what the drag is of these other investments, whether it's been Fiber, robotics or self-driving cars."