Alphabet’s quiet $110B Waymo move blows up ‘other bets’ narrative

Alphabet is often viewed arsenic “too large to fail.” However, adjacent the staunchest of bulls volition inevitably look to the “other bets” conception arsenic the country needing the astir work.

Until now.

Waymo, Alphabet's fast-growing autonomous-driving asset, is looking to drum up immoderate cash, Bloomberg reports.

The aim? Something astir $16 billion, successful a circular that volition spot valuation of the robotaxi concern magnitude to astir $110 billion, with Alphabet expected to concern astir $13 billion of the total.

GOOGL banal precocious traded astir $338, giving Alphabet a marketplace headdress of astir $2.94 trillion.

Waymo did not accidental "yes" oregon "no" regarding the fundraising details. Instead, it offered a portion of accusation that is hard to ignore.

That seems beauteous antithetic from the communicative that "robotaxis are coming someday." It's a awesome regarding the standard of the endeavor we are targeting.

The circular volition bring successful wealth from caller investors, including Sequoia Capital, DST Global, and Dragoneer Investment Group, arsenic good arsenic Alphabet's anticipated bulk commitment.

For Alphabet shares, this isn't simply "Alphabet marking up its ain asset."

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According to reports, third-party investors are prepared to wage much than $100 cardinal for Waymo.

Reuters besides said that Waymo runs much than 2,500 cars and provides paid robotaxi work successful the U.S. without a operator successful the car, which sets it isolated from galore of its competitors.

When you bash the math, Alphabet's estimated $13 cardinal concern doesn't look truthful crazy, considering Alphabet's $98.496 billion successful cash, currency equivalents, and marketable securities arsenic of Sept. 30, 2025.

So, a $13 billion cheque represents astir 13% of that heap of currency and little than 0.5% of Alphabet's marketplace valuation of astir $2.94 trillion.

Related: Salesforce Army woody exposes $5.6 cardinal hype trap

In different words, Alphabet tin effortlessly concern Waymo. The greater contented is whether Wall Street volition yet commencement to see Waymo successful Alphabet banal prices.

Plus, Waymo's astir caller fundraising circular successful October 2024 gave the concern a valuation of much than $45 billion. The Financial Times pegged the caller valuation astatine $110 billion, which is much than treble the erstwhile high.