Alphabet’s (GOOGL) Google is setting up its first African product development center in Kenya’s capital, Nairobi. The project is part of the company’s commitment to invest $1 billion in Africa over the next five years. The Nairobi hub follows the opening of an artificial intelligence research center in Accra, Ghana.
Google is hiring for various roles at its new Nairobi development center. The open positions include those for product managers, software engineers, user experience designers, and researchers.
What Is Google Seeking to Build?
The company is trying to lay the foundation for significant growth in Africa in the coming years. Therefore, it is seeking to build transformative products for the continent. It is looking for talented people who can help improve the smartphone experience for users in Africa and solve other technical challenges.
Google is aiming to provide fast, reliable, and affordable internet access across Africa. It also wants to build useful local products and support small businesses that power the continent’s economies.
Why Is Google Betting Big on Africa?
The company sees a huge growth opportunity in Africa. By 2030, the continent is expected to have 800 million internet users, up from about 300 million currently. Moreover, Africa is expected to be the home of one-third of the world’s youth population by the end of the decade.
Wall Street’s Take
On April 20, KeyBanc analyst Justin Patterson reiterated a Buy rating on Alphabet stock with a price target of $3,075 (20.1% upside potential).
Consensus among analysts is a Strong Buy based on 32 Buys. The average Alphabet price forecast of $3,495.58 and implies upside potential of 36.5% to current levels. Shares have gained 12.4% over the past year.
Stock Investors
TipRanks’ Stock Investors tool shows that investor sentiment is currently Very Positive on Alphabet, with 5.5% of portfolios tracked by TipRanks increasing their exposure to GOOGL stock over the past 30 days.
Takeaway for Investors
Advertising is Google’s primary revenue source. Africa’s fast-growing internet population provides the company an opportunity to extend its audience reach, which could in turn enable it to capture even more advertising dollars. When Google’s business is thriving, Alphabet’s stock looks more attractive.
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