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Alphabet (GOOGL) to Invest $7B, Add New Facilities Across U.S.
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Alphabet Inc.’s (GOOGL - Free Report) division, Google, has been continuously expanding presence in the United States. It plans to invest $7 billion in offices and data centers in Atlanta, DC, Washington, Chicago and New York in 2021.
In addition, the company aims to create 10,000 new full-time jobs in the country.
Notably, this move is in line with the company’s initiatives to expand in the country. These facilities will cater to the pandemic-driven surge in Internet traffic and demand for data-storage capacity.
We believe that the growing number of data centers will add efficiency to Google’s business as these will provide better storage for vast search data, emails, photos and most importantly, cloud data with advanced security.
Per a report from Research and Markets, the global cloud computing market is expected to grow from $371.4 billion in 2020 to $832.1 billion by 2025, at a CAGR of 17.5% during the 2020-2025 period.
The demand for cloud solutions and services has been increasing due to the COVID-19 pandemic. Global giants have been making great efforts to provide customers with cost-effective and productive digital solutions as every industry has been hard hit by the pandemic.
During the fourth quarter of 2020, Google Cloud revenues grew 46.6% year over year to $3.8 billion, accounting for 6.7% of the quarterly revenues.
However, Google’s expanding data center in United States has intensified competition from the likes of Amazon (AMZN - Free Report) , Microsoft (MSFT - Free Report) , Apple, Facebook and Alibaba, which are also leaving no stone unturned to bolster presence in the region.
The expanding infrastructure will eventually boost the company’s position in the cloud computing market.
Share Price Movement
Coming to the price performance, Alphabet has returned 92.3% over a year compared with the industry's growth of 91.8%.
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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Alphabet (GOOGL) to Invest $7B, Add New Facilities Across U.S.
Alphabet Inc.’s (GOOGL - Free Report) division, Google, has been continuously expanding presence in the United States. It plans to invest $7 billion in offices and data centers in Atlanta, DC, Washington, Chicago and New York in 2021.
In addition, the company aims to create 10,000 new full-time jobs in the country.
Notably, this move is in line with the company’s initiatives to expand in the country. These facilities will cater to the pandemic-driven surge in Internet traffic and demand for data-storage capacity.
We believe that the growing number of data centers will add efficiency to Google’s business as these will provide better storage for vast search data, emails, photos and most importantly, cloud data with advanced security.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Growth Opportunity
Per a report from Research and Markets, the global cloud computing market is expected to grow from $371.4 billion in 2020 to $832.1 billion by 2025, at a CAGR of 17.5% during the 2020-2025 period.
The demand for cloud solutions and services has been increasing due to the COVID-19 pandemic. Global giants have been making great efforts to provide customers with cost-effective and productive digital solutions as every industry has been hard hit by the pandemic.
During the fourth quarter of 2020, Google Cloud revenues grew 46.6% year over year to $3.8 billion, accounting for 6.7% of the quarterly revenues.
However, Google’s expanding data center in United States has intensified competition from the likes of Amazon (AMZN - Free Report) , Microsoft (MSFT - Free Report) , Apple, Facebook and Alibaba, which are also leaving no stone unturned to bolster presence in the region.
The expanding infrastructure will eventually boost the company’s position in the cloud computing market.
Share Price Movement
Coming to the price performance, Alphabet has returned 92.3% over a year compared with the industry's growth of 91.8%.
Zacks Rank
Currently, Alphabet carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>