Alphabet’s Google Cloud has announced a new partnership with telehealth platform Amwell.
As part of this strategic partnership, Google Cloud (GOOGL) will invest $100 million into Amwell to evolve and scale its telehealth portfolio to serve the needs of providers, insurers, and patients.
Amwell’s telehealth platform will run on Google Cloud and Amwell will integrate Google Cloud’s capabilities in AI (i.e. natural language processing and translation services), services aimed at secure handling of healthcare data in the cloud and enabling healthcare data interoperability, as well as collaboration tools like G Suite.
As Google points out, the COVID-19 pandemic has accelerated the telehealth trend virtually overnight—for instance, according to HHS data, Medicare primary care visits delivered virtually grew from less than one percent in February of 2020 to more than 40 percent in April.
“Today, we announced a new partnership with Amwell to help the healthcare industry transform for a world that is more reliant on telehealth, and to ensure that healthcare organizations and providers are equipped with telehealth solutions that provide holistic and secure experiences, support HIPAA compliance, are fully-integrated, and that will enable cohesive, patient-friendly journeys through the healthcare system” Google stated.
“It’s critical that organizations are thinking today about building this platform for the future. We’re committed to partnering with the healthcare industry to adapt, prepare, and thrive in the new future” the company added.
Shares in Google have surged 18% year-to-date, and the Street has a Strong Buy consensus on the stock’s outlook. That’s alongside a $1,743 average analyst price target, indicating upside potential of just over 10%.
Tigress Financial’s Ivan Feinseth repeated his bullish call on the stock on August 24. “We reiterate our Strong Buy rating on GOOGL as strength in Cloud, Play and YouTube helped to overcome near-term COVID-19-driven advertising weakness, and its leadership positions in every major secular technology trend will continue to drive long-term shareholder value creation” the analyst told investors.
According to Feinseth, GOOGL continues to build on its strength in all key technology growth areas, including Search, mobile, cloud, data center, e-commerce, entertainment, home automation, and autonomous vehicle technology, as well as health and fitness. “We believe significant upside exists from current levels and continue to recommend purchase” he concludes. (See GOOGL stock analysis on TipRanks).
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