Waymo Plans $15B Financing Round, Valuation to Reach $110B
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Financing Plan: Waymo is planning to raise approximately $15 billion, which would elevate its valuation to around $110 billion, with its parent company Alphabet contributing about $13 billion, reflecting strong confidence in its autonomous driving technology.
- Investor Support: In addition to Alphabet, investors such as Sequoia Capital, DST Global, and Dragoneer Investment Group are expected to participate in this financing round, indicating positive market expectations for Waymo's future development.
- Operational Achievements: With over 20 million trips completed, Waymo emphasizes its focus on safety-led operational excellence and technological leadership to meet the growing demand for autonomous mobility, further solidifying its market position.
- Valuation Growth: Following a previous funding round in October 2024 that valued Waymo at over $45 billion, this financing is set to significantly boost its market valuation, reflecting investor recognition of its long-term growth potential.
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Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for GOOG is 336.08 USD with a low forecast of 255.00 USD and a high forecast of 400.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 338.660
Low
255.00
Averages
336.08
High
400.00
Current: 338.660
Low
255.00
Averages
336.08
High
400.00
About GOOG
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Waymo Launches Driverless Service at San Francisco International Airport
- Service Expansion: Waymo announced it will gradually open its driverless ride-hailing service at San Francisco International Airport, initially serving select customers and planning to welcome all riders in the coming months, thereby enhancing its competitive edge in the autonomous market.
- Airport Coverage: San Francisco International Airport becomes Waymo's third major airport, following services at San Jose and Phoenix, which will help the company secure a stronger position against competitors like Uber and Lyft.
- Passenger Demand: Waymo co-CEO Tekedra Mawakana stated that providing rides to and from San Francisco International Airport addresses one of the most requested features by riders, anticipating a surge in demand for reliable autonomous rides this year due to major events.
- Operational Locations: Initial pickups and drop-offs will occur at the airport's rental car center, with plans to expand to terminals and other locations, reflecting Waymo's strategic intent to enhance user experience and service coverage.
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Nvidia Unveils New AI Technology, Promising Future for Autonomous Driving
- AI Technology Launch: At CES, Nvidia CEO Jensen Huang unveiled the latest AI models and semiconductor chips, declaring that 'the ChatGPT moment for physical AI is here,' indicating that the widespread adoption of autonomous vehicles is imminent, with robotaxis expected to be the first beneficiaries.
- Market Potential: According to Fortune Business Insights, the autonomous driving market is projected to reach $13.6 trillion by 2030; despite a slight dip in Nvidia's stock post-announcement, its leadership in this emerging industry remains significant.
- Intensifying Competition: While Nvidia may have a first-mover advantage, tech giants like Alphabet and Tesla are aggressively developing autonomous driving technologies, with Alphabet investing $5 billion in its subsidiary Waymo, which is expected to provide 14 million paid rides by 2025, intensifying market competition.
- Investment Opportunities: The Global X Autonomous & Electric Vehicles ETF offers investors a diversified investment option, holding shares in companies like Alphabet, Tesla, and Nvidia, and has achieved an average annual return of 10.73% since its inception in 2018, providing a solid investment avenue for those looking to capitalize on the autonomous driving trend.
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