Alphabet’s (GOOGL) Google cloud platform continues to attract big business as more companies transition to the cloud and look to scale across the globe. Shopify (SHOP) and HCA Healthcare (HCA) are the latest to ink strategic partnerships with the tech giant as they look to access competitive cloud computing technologies.
Shopify’s revenue was up 86% in 2020 as demand for independent, direct-to-consumer shopping increased. The partnership between Shopify and Google Cloud will provide merchants more access to world-class infrastructure to better handle all levels of traffic. Similarly, Shopify will be able to generate a better experience for merchants and customers as everything moves to the cloud. (See Shopify stock analysis on TipRanks).
The enhanced partnership with Google Cloud will allow Shopify to bring data processing and storage closer to merchants. Therefore, the e-commerce platform should also improve store speed and performance, reduce latency, and offer customers more personalized experiences.
“Shopify is trusting Google Cloud to help the company scale across the globe, allowing its merchants to handle peak traffic at any time of the year,” said MD James Lambed, Google Cloud.
Google comes into the strategic partnership with a cloud network covering 25 regions worldwide, ideal for lowering latency and ensuring Shopify is always available to merchants. Likewise, the company’s Global Virtual Private Cloud will allow the e-commerce platform to deploy applications in multiple regions. (See Alphabet stock analysis on TipRanks).
HCA Healthcare has also inked a strategic partnership with Google to accelerate its digital transformation. The partnership with Google Cloud will help build a secure and dynamic data analytics platform for HCA Healthcare.
HCA Healthcare plans to use the platform to develop next-generation operational models for actionable insights and improved workflows. (See HCA Healthcare stock analysis on TipRanks).
Baird Equity Research analyst Colin Sebastian reiterated a Buy rating on the stock, impressed by search trends around online travel and e-commerce.
The analyst has a $2,700 price target on the stock, implying 14.3% upside potential to current levels.
Consensus among analysts on Wall Street is a Strong Buy based on 26 Buy and 2 Hold ratings. The average analyst price target of $2,778.32 implies 17.59% upside potential to current levels.
GOOGL scores an 8 out of 10 on TipRanks’ Smart Score rating system, implying it is likely to outperform the overall market.
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