Morgan Stanley analysts estimate that Waymo, Google’s self-driving car effort, might be worth as much as $70 billion in a matter of years.
Top of the Order:
That’s a Lot of Waymo: When it became known that Google was getting into the self-driving car market, there was no doubt that the company was going to do something notable. The first notable thing was naming the technology venture Waymo. Maybe it’s supposed to mean, “Way More than what anyone else is doing?”
What it might mean, however, is, “Way More than what anyone else is worth.” Because according to analysts from Morgan Stanley, Waymo could be worth $70 billion.
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Biz Break: Apple gets cranking on iPhones in India The Morgan analysts, Brian Nowak and Adam Jonas, said in a research note this week that Waymo’s new deal with ride-sharing company Lyft could provide the impetus for Waymo’s big potential valuation. Of course, that $70 billion figure won’ t be attainable overnight. Nowak and Jonas said Waymo could get there if it ends up being responsible for 1 percent of all the miles driven worldwide in 2030.
That’s a lot of miles to go. Just to put things in a bit of perspective, the U. S. Department of Transportation said that in 2016, American drivers alone put 3.2 trillion miles on the road. So, it’s safe to say that the number of miles Americans drive will increase substantially in another 13 years. And by then, Waymo could be big enough for Google to spin out on its own.
Waymo is considered one of Google’s “other bets.” If it manages to reach that $70 billion valuation, or anything close to it, Waymo may turn out to be a bet that was worth placing.
Middle Innings:
Diversifying Apple: For all its history of developing products that change industries and create fiercely loyal customers, Apple has, at times, been a little slow on the draw regarding some matters. For example, Steve Jobs was never big on Apple paying out dividends during his time running Apple. In fact, Apple went from 1995 until 2012 without paying any dividends at all. Granted, part of that period included when many weren’ t sure how long Apple would even be around.
And for a company that touts its commitment to diversity, Apple hadn’ t been in a rush to hire someone to oversee its diversification efforts. Until now, that is. Apple said it has named Denise Young Smith as its first vice president for inclusion and diversity. Smith is a 20-year Apple employee and is moving into her new job from her position as Apple’s vice president of worldwide human relations.
Workman’s Comp?: Tesla has been a leader in the advancement of electric cars gaining popularity among consumers — at least among those who can afford one of Tesla’s vehicles. All those cars don’ t get built without the workers at Tesla’s assembly plant in Fremont.
And with all those workers doing their thing, accidents are bound to happen. But, a new study by the workplace group Worksafe found that work-related accidents involving Tesla employees were almost one-third higher than those at other automakers. The study, commissioned by Tesla, has the potential to add to employee efforts to unionize at the electric carmaker.
Bottom of the Lineup:
It was another upbeat day for investors as all the major stock indexes ended the day with respectable gains.
The tech-focused Nasdaq Composite Index rose 0.4 percent to 6,163.02.
The blue chip Dow Jones Industrial Average also added 0.4 percent to finish the session at 21,012.42.
And the broad-based Standard & Poor’s 500 Index climbed 0.3 percent to 2,404.39.
Quote of the Day: “There is a severe affordability problem in the Bay Area.” — Andrew LePage, a research analyst with real estate information service CoreLogic. LePage was speaking about a CoreLogic report that showed median prices for Bay Area homes have hit an all-time high.
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