Alphabet’s (GOOGL) Google plans to acquire the St. John’s Terminal in Manhattan for $2.1 billion. The property will act as the anchor of the company’s Hudson Square campus, allowing it to continue tapping New York’s world-class talent, vitality, and creativity. The transaction is expected to close in the first quarter of 2022. GOOGL shares rose 0.23% to close at $2,780.66 on September 21.
Google is a U.S. internet company that offers a wide array of services, including internet search and cloud offerings. It also offers online advertising services.
The investment in New York builds on Google’s plan to spend more than $250 million in 2021 on strengthening its New York presence. It also intensifies its push to grow its workforce into diverse communities as it looks to spur racial equity. (See Alphabet stock charts on TipRanks)
Google has operated from New York for more than 20 years, in which it has seen its workforce grow to over 12,000 employees. The search giant currently leases the St. John’s Terminal site at 550 Washington Street. By mid-2023, it should be part of the company’s sizeable investment in the city and its largest office space outside California.
The company has already made significant progress with the construction of its 1.7 million square foot of Hudson Square campus, which will act as the headquarters for its Global Business Organization in New York.
The St. John’s Terminal is being reimagined into a sustainable, adaptable, and connected building.
“Its biophilic design connecting people more closely to nature will add numerous outdoor open spaces and reconnect the Hudson Square neighborhood to the waterfront,” Google said in a blog post.
Recently, Credit Suisse analyst Stephen Ju reiterated a Buy rating on the stock with a $3,400 price target, implying 22.27% upside potential to current levels.
According to the analyst, Google has made significant monetization improvements on search advertising through product/AI-driven updates. The analyst also expects a greater revenue contribution from the search business.
Consensus among analysts is a Strong Buy based on 28 Buys and 1 Hold. The average Alphabet price target of $3,198.86 implies 15.04% upside potential to current levels.
GOOGL scores a 9 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.