As it turns out, tech giant Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) had plans for the money saved from layoffs, and those dollars are about to go to the UK. Once they arrive, they’ll become part of a major new initiative in artificial intelligence, which is exactly what Google said it was planning to do. Investors, meanwhile, are enthusiastic, and Alphabet shares are up nearly 2% in Friday morning’s trading.
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The reports note that Google is planning to put $1 billion into a new data center out in Waltham Cross, Hertfordshire. Once it’s in place, Debbie Weinstein, vice president and managing director of Google in the UK and Ireland, noted that Google will be able to bring extra processing capability and better access to cloud services to those in the country. It has already picked up a one-million-square-foot complex in King’s Cross and built and launched an Accessibility Discovery Center to support the operation further.
A Serious Shakeup in the Works
Here’s where things get particularly interesting. It turns out that Google has also been working on a new development in Fort Wayne, Indiana, called “Project Zodiac.” It’s another new data center campus, though that project won’t be ready to go for a few months yet. Further, the Google layoffs are starting to foment discontent within the survivors at Google. One engineer turned to LinkedIn, penning an essay excoriating “glassy-eyed” leadership at Google, noting, “Who can be dawn-of-a-new-era-of-humanity creative in this environment of fear?” Protests are already planned, and the Alphabet Workers Union is starting to take positions.
What is the Target Price of GOOGL Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 28 Buys and seven Holds assigned in the past three months, as indicated by the graphic below. After a 48.68% rally in its share price over the past year, the average GOOGL price target of $156.38 per share implies 7.07% upside potential.
