A year after Google became Alphabet, the company's emphasis on financial discipline seems to be working — at least for Wall Street.
Wall Street veteran Ruth Porat has been seen as the architect of holding company Alphabet, living up to predictions that she would return cash to shareholders and reign in "moonshot" expenses after joining Google as chief financial officer in 2015.
"I think Ruth is also showing she's balancing out new investments with their core business in a much more predictable way," Kate Mitchell, co-founder of Scale Venture Partners, told CNBC's "Squawk Alley" on Friday. "They've really settled down, and they're consistent at delivering."
Google parent Alphabet's shares rose nearly 2 percent on Friday after announcing better-than-expected financial results and a $7 billion stock buyback. It traded in stark contrast to Amazon, which dropped 4 percent amid aggressive, widespread investment plans, a long-time philosophy of the company.
After better-than-expected earnings and a generous return to shareholders, Alphabet's stock is looking cheap compared to the overall market, said Eric Sheridan, managing director, UBS equity research, told CNBC's "Squawk on the Street" on Friday. The buyback is a message to Wall Street about Alphabet's confidence in the business, said Mitchell.
Co-founders Sergey Brin and Larry Page announced Google's new corporate structure last year, creating a collection of companies called Alphabet and adding transparency between core businesses — such as search, Android and YouTube — and its more creative endeavors: "smaller bets in areas that might seem very speculative or even strange."