Google (GOOGL, $1,155.92) Passes Up Bid For $10 Billion Contract With the Pentagon
Alphabet’s Google will no longer bid for a $10 billion contract with the Pentagon.
The contract is for a program called Joint Enterprise Defense Infrastructure (JEDI), which would allow the U.S. Department of Defense (DOD) to use cloud services for storing massive data. Google has decided to not pursue the contract since the latter could apparently conflict with the company’s corporate principles. “"While we are working to support the US government with our cloud in many areas, we are not bidding on the JEDI contract because first, we couldn't be assured that it would align with our AI Principles and second, we determined that there were portions of the contract that were out of scope with our current government certifications," Google's statement said.
The company is however open to a bidding for a part of it if the DOD employs more cloud computing companies' services for the program. But the Pentagon suggests that splitting the contract among multiple providers might make the project too complex and adversely affect the data migration process.
In the past, Google’s employees have been vocal about not supporting any contract with the U.S. government that might in any way contribute to warfare technology. A CNN article in June reported that Google wouldn't renew its contract for the Pentagon's Project Maven program when it ends in March 2019. The program uses artificial intelligence for drone strikes.
With Google stepping back, the Pentagon's $10 billion JEDI contract might be eyed by Microsoft, Oracle and Amazon (as indicated by a July report in Bloomberg). Bids are due by Friday, October 12.
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Notable companies
The most notable companies in this group are Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL), Meta Platforms (NASDAQ:META), Spotify Technology SA (NYSE:SPOT), Baidu (NASDAQ:BIDU), Pinterest (NYSE:PINS), Tencent Music Entertainment Group (NYSE:TME), Snap (NYSE:SNAP), Twilio (NYSE:TWLO), Zillow Group (NASDAQ:Z).
Industry description
Companies in this industry typically license software on a subscription basis and it is centrally hosted. Such products usually go by the names web-based software, on-demand software and hosted software. Cloud computing has emerged as a major force in this space, making it possible to save files to a remote database (without requiring them to be saved on local storage device); as long as a device has access to the web, it can access the data and the software programs to run it. This has in many cases facilitated cost efficiency, speed and security of data for businesses and consumers. Alphabet Inc., Facebook, Inc. and Yahoo! Inc. are some well-known names in the internet software/services industry.
Market Cap
The average market capitalization across the Internet Software/Services Industry is 60.93B. The market cap for tickers in the group ranges from 1.11K to 1.94T. GOOGL holds the highest valuation in this group at 1.94T. The lowest valued company is MSEZ at 1.11K.
High and low price notable news
The average weekly price growth across all stocks in the Internet Software/Services Industry was -1%. For the same Industry, the average monthly price growth was -0%, and the average quarterly price growth was 2%. TRFE experienced the highest price growth at 53%, while QQQFF experienced the biggest fall at -58%.
Volume
The average weekly volume growth across all stocks in the Internet Software/Services Industry was 15%. For the same stocks of the Industry, the average monthly volume growth was 9% and the average quarterly volume growth was -8%
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Valuation Rating: 45
P/E Growth Rating: 72
Price Growth Rating: 59
SMR Rating: 84
Profit Risk Rating: 92
Seasonality Score: -9 (-100 ... +100)