Google’s Alphabet stock is hovering around the $306 range on Tuesday. It is among the hardest hit tech stocks, losing nearly 5% in value in a week. The equity is on a steady decline, falling $345 to $306 in February alone. Leading tech stocks are down dramatically this year, while the energy sector is on an upward swing.
However, TD Cowen has given a buy call for Google’s Alphabet stock with a target of $365. The investment bank’s research team sent a note to clients in February giving the buy call for GOOG. The bullish thesis comes despite the recent slump in tech stocks that has wiped away nearly $1.4 trillion in value.
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Google’s Alphabet Stock: Why is TD Cowen Bullish on GOOG?
The recent price analysis from TD Cowen focuses on Google’s Waymo vehicles, making it the centerpiece for Alphabet stock to soar. The note highlighted Waymo’s 1.26 million trip completion in California recorded in December. That was an increase of 1.02 million recorded in September last year.
TD Cowen wrote that the trips increased by 3.8% quarter-over-quarter, reflecting expansion in Los Angeles and San Francisco. The autonomous vehicle service has reached 280,000 weekly trips in California, making competitors Cruise and Zoox take notice. The focus on Waymo is underrated and could be the next catalyst for Google’s Alphabet stock, wrote the investment firm.
If the price prediction turns out to be accurate, Google’s Alphabet stock could generate nearly 19% returns. Therefore, an investment of $1,000 now could turn into $1,190 if the forecast turns out to be accurate. TD Cowen is emphasizing Waymo, projecting the company’s subsidiary to grow across California.
Alphabet is spreading its wings across various sectors and is looking to dominate the industry. The firm is also acquiring smaller companies and merging them into its fold, inadvertently removing competition. Google’s stock could benefit from the ongoing developments in the changing market dynamics.