Ford stock price moves higher on Google Android partnership
- Ford cars equipped with Android operating systems as of 2023
- The carmaker has also named Google Cloud as its “preferred cloud provider”
- Ford stock price initially soared about 8% before pulling back to close 2.85% higher on Monday
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.”
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“As Ford continues the most profound transformation in our history with electrification, connectivity and self-driving, Google and Ford coming together establishes an innovation powerhouse truly able to deliver a superior experience for our customers and modernize our business,” said Jim Farley, President and CEO of Ford.
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.
“From the first moving assembly line to the latest driver-assist technology, Ford has set the pace of innovation for the automotive industry for nearly 120 years,” said Sundar Pichai, CEO of Google and Alphabet. “We’re proud to partner to apply the best of Google’s AI, data analytics, compute and cloud platforms to help transform Ford’s business and build automotive technologies that keep people safe and connected on the road.”
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.
Ford and Google have announced a major multi-year deal that will see Google’s Android operating system powering Ford vehicles starting from 2023.