Alphabet Invests $10 Billion in India, Stock to Outperform
Under the leadership of Sundar Pichai, Alphabet said it would spend $10 billion in India within five to seven years. This marks the internet giant’s biggest commitment to a growth market to date.
The equity investments and tie-ups would go through a digitization fund, highlighting key apps and software platforms in India. The country is one of the world’s biggest internet services markets.
Pichai announced the investment on the annual Google for India event held on a webcast earlier today. He then proclaimed that this was where the company’s confidence in India’s future and its digital economy would lie.
For now, Google is focusing on making sure the internet expands beyond vernacular languages. This plan involves making the internet more affordable and useful for new and current users.
There’s more work to do to make this happen, especially for his goal to reach 1 billion Indians with Google. He wants to improve voice input and computing for all Indian languages and to support local entrepreneurs.
Said project is called the Google for India Digitation Fund, which he plans to achieve in a maximum of seven years.
This year, Alphabet also plans to focus on other features, such as artificial intelligence and education in India. There are also plans to build new products and services unique to India’s needs, which also includes health and agriculture.
Pichai is looking forward to Prime Minister Narendra Modi’s support with the biggest investment in India yet.
Alphabet Stock, to Increase Near-Term
Alphabet shares went up nearly 1% on Monday trading after Mizuho analyst, James Lee, raised his price target. As more coronavirus cases run over the stock market, he cited that software firms would see the most upcoming gains.
Lee raised his target price for GOOGL by 5.8% to $1,650 and kept a buy rating for the firm. He claims that the demand for retail and financial services would shift to companies like Pichai’s.
GOOGL’s shares gained 27.2% since March, which helped the S&P 500 gain more than 15% within three months. Year-to-date, GOOGL has gained more than 13%.
Healthcare has been shifting towards software as demand for telemedicine increases. In turn, demand for cloud stocks would inevitably increase with the need for CRM and patient database management.
Analysts are urging stock trading to boost short swings for tech companies for a series of issues. Although these companies are likely to outperform in the stock market, this might not be the case within five years.
Mega-cap technology companies like Alphabet have helped the Nasdaq Composite hit a new high this year. Rumors are circulating that governments around the world are getting increasingly threatened by Big Tech’s power.
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