Google's result were good (even if the top-line revenue missed), but what investors were looking for, and what had pressured GOOG's stock price for the past year, was concern that runaway hiring and spending were eating away at the bottom line. And that is precisely what Ruth Porat, who was poached from Morgan Stanley in March, decided to give to investors when she said just two words on the call: "expense management."
For those who thought $70M was too rich for a CFO... All Ruth Porat said was "expense management" and Google's market cap soars $56B.— Erik Schatzker (@ErikSchatzker) July 17, 2015
What happened next is the single biggest surge in GOOG market cap in history: at last check the stock was up 14% on the day, equivalent to about $55 billion increase in market cap in just one day.
Putting this in perspective, just today, the value of Google has increased by more than the market cap of 415 S&P 500 companies!
Below is a representative sample showing how the $55 billion intraday increase stacks relative to the market cap of some other S&P 500 companies.