Ford stock price moves higher on Google Android partnership

Shares of Ford Motor Company (NYSE: F) have been moving higher this week after the carmaker announced a partnership with Google yesterday.

Fundamental analysis: A step in the right direction - analyst

The official announcement reads that two companies signed a 6-year deal that will see Ford cars equipped with Android operating systems as of 2023. Ford has named Google Cloud as its “preferred cloud provider.”

The Google partnership represents a part of Ford’s $11 billion business restructuring and streamlining of its huge operations. Ford vehicles will be using Android, Google Assistant, Google Maps, and Google Play starting from 2023.

Google will benefit from acquiring a major cloud customer given that it has started slipping behind Amazon and Microsoft in the cloud race. Google will help Ford to take advantage of Google Cloud’s artificial intelligence (AI) and machine learning (ML) platforms. 

Technician analysis: Shares gain 

Ford stock price initially soared about 8% on the announcement before pulling back to close 2.85% higher on Monday. Today, the stock price has gained a further 1.5% today as stocks recover from last week’s correction. 

A pullback to $10.50 facilitated a buying opportunity last week for traders looking to invest in Ford shares. The price action quickly returned to $11.00 amid a buying wave. The next targets on the upside are $12.10 and $13.50.

Summary

Ford and Google have announced a major multi-year deal that will see Google’s Android operating system powering Ford vehicles starting from 2023.