With the rapid development of autonomous driving technology, Waymo has become the industry leader and attracted much attention from investors. As Google’s independent subsidiary focusing on self-driving cars, Waymo has unique advantages in technology, talents and funding support. However, since it is not a public company yet, there are limited options for investors who are interested in Waymo. This article will provide an overview of several main approaches that investors can take to invest in the promising future of Waymo and driverless cars.
Investing in Alphabet as Waymo’s parent company
The most direct way to invest in Waymo now is to buy the stocks of its parent company Alphabet, which fully owns Waymo. As one of the Big Tech giants, Alphabet has a market cap of over 1 trillion USD. While Waymo only accounts for a small part of its valuation, Alphabet’s stock price will still be positively affected by the development and future prospects of Waymo. Investors can easily purchase Alphabet’s stocks and ETFs containing Alphabet through major brokerages.
Investing in self-driving focused ETFs
There are some ETFs focused on autonomous driving and related sectors that have Waymo or Alphabet as major holding companies. For example, the ETF ‘DRIV’ has both Alphabet and Waymo’s key competitor GM as top holdings. By purchasing these ETFs, investors can get exposure to Waymo and the self-driving industry as a whole.
Investing in autonomous driving focused funds
Venture capital and private equity funds that specialize in the autonomous driving sector likely have stakes in Waymo or its key partners. For qualified investors, investing in those specialized funds can provide indirect access to Waymo’s future growth. However, the investment amount requirement is usually high.
Future IPO of Waymo
There are speculations that Alphabet may spin off Waymo as a standalone public company in the future. If Waymo does launch its own IPO, investors will have the opportunity to buy its stocks directly. However, the timing of a potential Waymo IPO is still uncertain. Investors should pay close attention to related news.
In summary, currently investors can gain exposure to the self-driving leader Waymo by buying Alphabet’s stocks, related ETFs, or specialized autonomous driving funds, while waiting for Waymo’s possible IPO in the future.