The current stock market has shown a clear demand for AI and information technology companies. Yet, the differentiating factor is the diversification of these companies and how they adapt to the changing needs of the market. This reality is why many analysts believe Alphabet (GOOGL) stock is on its way to a $500 price.
Currently, the company behind titanic brands like Google and YouTube is trading at $166. Yet, the continued expansion of its offerings has many believing that price is set to skyrocket in the coming years. According to one report, it could be set to challenge behemoths like Apple (APPL) and Microsoft (MSFT).
Source: BBC
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GOOGL to $500? Why One Report Believes in Alphabet’s Potential
Throughout 2024, Nvidia (NVDA) has almost surged 200% to reach its current position. That increase has been driven by its connection to generative AI. The growing interest in the technology had seen investors bank on the chipmaker’s position and future growth. Thus, paying off the forward-thinking nature of what the company offers.
A similar phenomenon could be set to benefit a company that is already one of the world’s largest. According to one report, Alphabet (GOOGL) could be poised to surge to an unprecedented $500. Specifically, because of one developing business that may be overlooked presently.
Within a new report from Forbes, they predict that Alphabet is set to grow more than 3x from its current $2 trillion market cap. The reason for this rapid increase will be connected to its often-dismissed Waymo business. Indeed, the autonomous driving business could be set to catapult the company beyond what even Nvidia has enjoyed throughout the last year.
Source: Waymo
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The report notes that Waymo has increased weekly paid rides from 10,000 to more than 100,000 in the last year. Additionally, the last six weeks have echoed similarly impressive growth figures. The weekly raised increased from 50,000 to 100,000 in that time frame.
With Tesla’s (TSLA) Robotaxi getting all the hype, Waymo could be in the greatest position for success. There is no denying that Uber’s interest in the market is due to its massive potential. As the race to get in front of demand continues, Alphabet could be on its way to the leader house. Much in the same way as Nvidia did with AI technology in 2023.