Waymo To Separate From Google?

Core Insights - Waymo, Alphabet's self-driving business, has significantly increased its autonomous ride deliveries to approximately 250,000 per week, up from less than 10,000 two years ago, indicating strong scaling potential [1] - Despite this growth, Waymo remains unprofitable, with its parent company reporting a $4.4 billion loss in its Other Bets segment, which includes Waymo [2] - The U.S. Department of Justice's antitrust lawsuit against Alphabet poses a potential risk, as it may lead to a breakup of the company, impacting Waymo's operations and funding [3] Financial Performance - Waymo has raised over $10 billion since its inception, with the latest funding round being a $5.6 billion Series C led by Alphabet and notable investors [2] - The company continues to incur losses on each ride, indicating a lack of demonstrated profitability despite its operational scale [2] Competitive Landscape - Waymo faces increasing competition from Tesla, which plans to deploy its own robo-taxi fleet and leverage its existing vehicle base, potentially leading to better unit economics compared to Waymo [4] - The ongoing antitrust scrutiny may hinder Waymo's growth if it is forced to operate independently from Alphabet, which provides essential resources and funding [4] Market Sentiment - Alphabet's stock has declined by about 10% year-to-date, influenced by economic concerns, uncertainties regarding its search business growth in the AI era, and ongoing antitrust issues [5]