Alphabet Stock (GOOGL) Accelerates as Waymo Predicted to Hit $6B in Bookings by 2034

Shares in Alphabet (GOOGL) accelerated today as a leading analyst said its autonomous vehicle ride-hailing service Waymo was the clear U.S. leader in the sector.

Waymo Will Soar

Five-star-rated TipRanks analyst John Blackledge of TD Cowen added that Waymo was now worth 2% of Alphabet and had an individual valuation of $60 billion.

Blackledge said he expects the Waymo service will see vehicle numbers soar to over 3,500 by the end of next year. It is set to launch in at least two new cities per year between 2027 and 2029 and three new cities in the U.S. between 2030 and 2034. As such Waymo’s gross bookings numbers will soar from $230 million in 2025 to $6.1 billion in 2034.

Earlier this week Waymo co-CEO Tekedra Mawakana told CNBC that it has reached 10 million trips, doubling in the past five months.

Sum of the Parts

However, Blackledge cautioned that the autonomous vehicle market was not a ‘winner takes all’ scenario and that its growth would be driven partly by partnerships with other players such as Uber (UBER) and Lyft (LYFT). Indeed, he said this would “mitigate terminal value risk”, for Uber and Lyft.

Blackledge also updated his ‘sum of the parts’ valuation model of Alphabet. He said its search division comprises 60% of its value, followed by cloud at 15% and YouTube Ads at 9%, with subscriptions, platforms and devices at 6.5% and Waymo at 2%.

He said that he continues to see valuation upside potential in Cloud, DeepMind and Waymo. He values DeepMind and Generative AI at $150 billion. “Alphabet’s broad investment and integration of GenAI across all its businesses implies potential upside over time,” Blackledge said.

Is GOOGL a Good Stock to Buy Now?

On TipRanks, GOOGL has a Strong Buy consensus based on 28 Buy and 9 Hold ratings. Its highest price target is $240. Its consensus price target is $197.69 implying an 17.28% upside.

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