Prediction: Alphabet Will Spin Off Waymo Within 5 Years

One of the most intriguing growth opportunities for Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) these days is in robotaxis, via its Waymo business. It has the potential to revolutionize the taxi industry. Last year, it averaged 150,000 trips per week, and that number is going to climb even higher this year, as the service expands into more markets.But despite Waymo's promising potential, here's why I think it's highly likely that Alphabet will spin off the business within the next five years.Creating and maintaining a growing fleet of robotaxis is going to be expensive. And the danger for Alphabet is that as Waymo grows in size, Alphabet's operations may get much more complex and costly amid that process. It's already operating in multiple cities, including Los Angeles, San Francisco, Austin, and Phoenix. However, Waymo has recently announced plans for more cities, with Atlanta, Washington, D.C., and Tokyo being on the list of markets it wants to expand into in the near future.Continue reading

Apr 10, 2025 - 13:10

Prediction: Alphabet Will Spin Off Waymo Within 5 Years

One of the most intriguing growth opportunities for Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) these days is in robotaxis, via its Waymo business. It has the potential to revolutionize the taxi industry. Last year, it averaged 150,000 trips per week, and that number is going to climb even higher this year, as the service expands into more markets.

But despite Waymo's promising potential, here's why I think it's highly likely that Alphabet will spin off the business within the next five years.

Creating and maintaining a growing fleet of robotaxis is going to be expensive. And the danger for Alphabet is that as Waymo grows in size, Alphabet's operations may get much more complex and costly amid that process. It's already operating in multiple cities, including Los Angeles, San Francisco, Austin, and Phoenix. However, Waymo has recently announced plans for more cities, with Atlanta, Washington, D.C., and Tokyo being on the list of markets it wants to expand into in the near future.