By CCN: Now that the battery on Tesla’s stock is running on empty, investors might want to consider other options. Alphabet (GOOGL), which is the parent company of Google, could get a boost from Waymo, the search giant’s autonomous vehicle subsidiary. On CNBC’s Fast Money, Guy Adami gave the bullish case for Alphabet’s stock, saying:
“Tesla’s woes, Waymo’s gains. Tesla’s in the autonomous industry. You know what? Maybe they’re not as close as we think.”
To audible laughter in the studio background, Adami punned:
“Maybe Waymo is way-mo–closer than everyone else. I think people are underestimating the value of Waymo. Don’t sleep on Waymo.”
He went on to predict that GOOGL stock could trade as high as $1,300 and higher compared to its current level of $1,146. This is considering that “Google gets its act together” in the next quarterly earnings report, which Adami fully expects it will.
Alphabet is down more than 10% from its high, but @GuyAdami says now might be the best time to buy the stock $GOOGL pic.twitter.com/ZrsGhDbFQL
— CNBC’s Fast Money (@CNBCFastMoney) May 23, 2019
Waymo Doesn’t Mind Being Boring
Autonomous vehicles represent a technology that’s vitally important to human safety.
Waymo expects a more measured approach vs. competitors will create better products and inspire more consumer confidence. Uber is charging forward with its development, and Tesla’s Elon Musk has characteristically set incredibly high timeframe expectations to roll out self-driving cars to consumers.
Last month, Musk claimed Tesla will bring a fully autonomous vehicle into mass production within two years. Other experts in the industry balked at the claim.
Brad Templeton, an early advisor to Google’s self-driving car division, told Forbes:
“Tesla Autopilot is not yet even close to where Waymo was six years ago, and while Waymo has launched a simple ride-hailing network, it still has safety drivers along for the ride most of the time. For Tesla to reach that level in such a short time would be a remarkable achievement.”
By contrast to the flashier, more boastful approach of its peers, Waymo doesn’t mind being boring.
Alphabet’s Stock Price Is At Key Support
Adami isn’t just excited about Waymo’s prospects in the self-driving car business. He also sees a bargain buy in Alphabet’s stock, saying on CNBC to buy the dip. Alphabet’s absolute war chest of cash on hand is one reason for his bullish take:
“They have a huge cash hoard. Depending on the metrics you use, might even be better than Apple’s. I think they have $168 billion in cash. I think that comes out to about $160 a share. That is significant. Now they have been penalized for it because they haven’t put it to use. But guess what, it’s going to be a positive for them.”
The cash situation is a stark contrast to the heavily leveraged Tesla.