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Waymo’s potential: how big of an opportunity is it for Google?

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April 30, 2025
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Waymo’s potential: how big of an opportunity is it for Google?
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Waymo continues to commercialise its robotaxi operations across the US.

In fact, nationwide, it’s now completing as many as 250,000 rides on a weekly basis.

Still, Waymo has “no implied value” in Alphabet Inc’s (NASDAQ: GOOGL) current valuation, says Youssef Squali, the global head of internet and media at Truist Global.

Squali’s remarks arrive shortly after Google’s Q1 earnings that topped Street estimates.

Still, shares of the tech titan are down more than 20% versus their year-to-date high, at the time of writing.

What was Waymo’s valuation in its latest funding round?

Speaking with CNBC last week, Squali reminded investors that Waymo’s latest funding round in November already valued it at a whopping $45 billion.

At the time, Waymo had a commercial footprint in San Francisco only.

Since then, Google’s self-driving business has expanded to several other markets and is fully committed to penetrating dozens more over the next 12 – 18 months.

“As revenues grow, we think their unit economics improve and the valuation would increase dramatically,” the Truist analyst told CNBC in an interview last week.

Youssef Squali remains bullish on Google stock also because its management confirmed continued strength in search and advertising on the earnings call despite rising competition from AI.

What could Waymo be worth moving forward?

Waymo has already partnered with Uber to expand its reach in Austin and Atlanta.

Plus, it’s “building a network of partners for maintaining fleets of vehicles and doing all operations,” as well, Alphabet’s chief executive, Sundar Pichai, revealed on the earnings call.

According to Truist’s Squali, if Uber Technologies is currently valued at north of $160 billion, “there’s no reason for Waymo to not be worth at least the same over time as they build their infrastructure.”

All in all, the firm’s analyst dubbed Waymo a “bright spot” in Google’s story in his interview with CNBC.

Note that Alphabet shares also pay a dividend yield of 0.49%.

Should you buy Google stock after its Q1 earnings?

Truist currently has a “buy” rating on Google. Its $200 price target indicates potential upside of well over 20% in the “Magnificent 7” stock from current levels.

In its latest reported quarter, the Nasdaq-listed firm failed to meet expectations for YouTube advertising and Google Cloud revenues. Its traffic acquisition costs (TAC) exceed estimates in Q1 as well.

Still, Youssef Squali dubbed the company’s quarter a good one overall, as Alphabet came in handily above Street estimates for total revenue and adjusted earnings per share (EPS) in the first quarter.

On the earnings call, Google’s chief of business, Philipp Schindler, agreed that the giant is “not immune to the macro environment, but said the end to de minimis exemption under the Trump administration will cause only a “slight headwind” to the ads business in 2025.

The post Waymo’s potential: how big of an opportunity is it for Google? appeared first on Invezz

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