Shares of Google parent company Alphabet (NASDAQ: GOOGL) slipped about 5% from record highs as higher Treasury yield hits tech stocks.
Fundamental analysis: Alphabet to invest over $7 billion to expand data centers and office space in 2021
Google announced it will invest over $7 billion in real estate across the United States this year as a part of its spending drive amid the coronavirus pandemic.
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The tech giant said it will spend the money to expand offices and data centers in 19 states to create a minimum of 10,000 full-time jobs. Around $1 billion will be invested in California, the company said.
“Coming together in person to collaborate and build community is core to Google’s culture, and it will continue to be an important part of our future,” said Alphabet’s chief executive Sundar Pichai.
“So we continue to make significant investments in our offices around the country, as well as our home state of California, where we will be investing over $1 billion this year.”
Google’s investment in data center expansions comes as a part of the company’s drive to grow its cloud operations.
In the last financial report, Google’s cloud unit reported a loss of $5.61 billion on $13.06 billion revenue in 2020. At the moment, Google Cloud is focused mostly on expanding its business, said the company’s CEO Thomas Kurian.
Google employees are set to return to offices this fall. The company does not plan on implementing a permanent remote work plan and the majority of staff are expected to return to assigned offices three days a week starting in September, Pichai said.
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Technical analysis: Buyers hoping for a gap fill
Google stock price fell nearly 3% yesterday as the tech-heavy Nasdaq Composite index slipped amid higher Treasury yields. Yesterday’s push lower pushed Google stock into the red for a week, while shares of Google trade nearly unchanged on a monthly basis.
Google share price is now heading towards the nearby support line at $1,950, where a gap is awaiting after Google stock price soared higher on better-than-expected results last month. Oppositely, traders looking to invest in Google stock are likely to target fresh record highs above $2,150.
Google said it will spend more than $7 billion in real estate in the U.S. in 2021, a spending drive that will result in creating 10,000 full-time jobs. In the meantime, Google stock price slipped lower amid a wider retreat seen in tech stocks in recent days.