Google Cloud Computing To Buy Software Firm? Thomas Kurian May Know

0
92
Google Cloud Computing To Buy Software Firm? Thomas Kurian May Know


Thomas Kurian, the new boss of the Google cloud computing business, is set to appear at a Goldman Sachs technology conference in San Francisco on Tuesday amid growing speculation that Google could buy a big enterprise software company.




X



A former Oracle (ORCL) executive, Kurian took over as head of Google cloud computing business in early January. It's believed to be Kurian's first public appearance at a financial conference since he took the helm.

When Google-parent Alphabet (GOOGL) reported earnings on Feb. 4, management had little to say on any changes in strategy for Google cloud computing. Analysts expect Kurian to take part in the Goldman Sachs conference at 11:15 a.m. ET on Tuesday. A webcast is available here.

“We believe investors are largely expecting Google to get more aggressive on acquisitions for cloud,” Raymond James analyst Aaron Kessler said in a report to clients.

Google Shopping For Software Company?

Google acquisitions from 2015 through 2018 slowed down compared with the four years before that.

Analysts have mentioned ServiceNow (NOW), Atlassian (TEAM) or Splunk (SPLK) as possible targets for the Google cloud computing unit. With an acquisition, Google would obtain a corporate customer base and salespeople.

Google trails Amazon Web Services, part of Amazon.com (AMZN), and Microsoft (MSFT) in the cloud computing services market. To date, many of Google's cloud customers have been technology firms.

Google has aimed to woo enterprise customers with cloud-based data-analytics and artificial-intelligence tools.

On its recent Feb. 4 Alphabet earnings call, management highlighted new customer wins for the Google cloud computing unit. Google said the number of cloud contracts worth more than $1 million as well as the number of multiyear contracts signed had more than doubled year-over-year.

Google stock edged up 0.5% to 1,108.35 on the stock market today. In 2019, Google stock has climbed 5.5%.

YOU MAY ALSO LIKE:

This Is The Biggest Stock Market Threat — And It's Likely To Get Worse

IBD's ETF Market Strategy

How To Invest In Growth Stocks: Read This Column Daily

What's The Market's Direction Now? Take 5 Seconds To Check It In This Feature Each Day

See Stocks Just Added To — And Cut From — IBD's Top Screens



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here