Waymo, formerly known as Google’s self-driving car project, has been making significant advancements in autonomous vehicle technology in recent years. As an Alphabet subsidiary, Waymo remains a privately held company, so there is currently no direct way for investors to invest in Waymo stock. However, some analysts predict Alphabet may spin off Waymo as a separate public company in the future. This could provide an opportunity for investors to gain exposure to this high-growth sector. Until then, investors can invest in Alphabet stock as a proxy for Waymo, or invest in other public self-driving car companies.
No direct stock listing for Waymo yet
As an Alphabet subsidiary, Waymo does not have its own publicly traded stock. Alphabet continues to fully own and fund Waymo for now as it remains in the research and testing stages. While Waymo is considered a leader in autonomous driving technology, it has yet to commercialize self-driving vehicles on a large scale. Some analysts speculate Alphabet may eventually spin off Waymo through an IPO once its technology and business model are more proven and profitable. However, Alphabet has not made any official indication when or if this could occur.
Invest in Alphabet as proxy for Waymo exposure
For investors who want exposure to Waymo’s growth potential, the best current option is to invest in Alphabet stock. As Waymo’s parent company, Alphabet benefits from Waymo’s advancements in self-driving car technology. Morgan Stanley analysts estimate Waymo may be worth $80 billion by 2030. While only a small part of Alphabet’s over $1 trillion market cap today, Waymo represents a key long-term growth driver. Alphabet stock offers a way to invest in Waymo while also diversifying across Alphabet’s core digital advertising business and other emerging initiatives.
Other self-driving car stocks
While not directly comparable to Waymo’s autonomous driving focus, some other public companies are also developing self-driving vehicle technology, including Tesla, General Motors’ Cruise subsidiary, and Uber’s Advanced Technologies Group. Investors seeking exposure to the autonomous driving theme could research these companies. However, Wall Street analysts view Waymo as the clear leader given its large head start and resources from Alphabet.
Future possibility of Waymo IPO
If Waymo continues on its promising trajectory, many analysts expect Alphabet could spin it out as a separate public company sometime in the next 5-10 years. This would allow Alphabet to unlock value by highlighting Waymo’s strengths apart from the core Google business. And it would give public market investors a pure-play option on autonomous driving. However, the timing of a potential Waymo IPO remains highly speculative. Investors should follow any official announcements from Alphabet for updates on Waymo’s future.
While Waymo does not have its own stock listing yet, investors can gain exposure by investing in parent company Alphabet. The possibility of a future Waymo IPO also looms as self-driving technology advances.