Alphabet (GOOGL): Does Its Valuation Account for Waymo’s Potential?

Alphabet Inc. (NASDAQ:GOOGL) can finance Waymo from a much larger advertising and cloud business. That gives it room to build autonomous transportation, but the investment is not free. The question is whether growing profits can absorb heavy infrastructure spending while Waymo works toward a lasting business model. At roughly 23 times forward earnings, the existing businesses must justify the price before investors give much value to future robotaxi profits. For alternatives to Alphabet's Waymo investment, compare the 10 Best Autonomous Vehicle Stocks to Buy Now. More Rides Must Eventually Mean Better Economics Autonomous ride-hailing can spread vehicle and technology costs across more paid trips.