What happened
Thursday was generally a good day for tech stocks, but you wouldn't infer that purely from Alphabet's (GOOG 0.23%) (GOOGL 0.23%) performance. Investors seemed concerned by the news that its self-driving technology unit is pulling back on efforts to develop an autonomous semi-truck.
While other top tech titles were enjoying a lift provided by Meta Platforms' strong quarterly results, both listed Alphabet stocks basically only traded flat on the day.
So what
In an official company blog post authored by co-CEOs Tekedra Mawakana and Dmitri Dolgov, Alphabet's Waymo self-driving subsidiary announced an adjustment to its business strategy. The two executives wrote that their unit would focus on autonomous technology in the ride-hailing segment. In doing so, they added, they are to "push back the timeline" on Waymo's efforts to build a self-driving semi-truck.
While the bulk of Alphabet's value as a monster tech company is its great dominance in online search, it is involved in a number of other tech niches that are potentially lucrative. Autonomous driving is a particularly promising one, as the auto industry is racing toward the goal of full, nonhuman operation. And companies that can get there before their rivals stand to win hugely from the first-mover advantage.
Now what
The ride-hailing business is a juicier target than commercial trucking, so the reworking of strategy certainly makes business sense for the Alphabet subsidiary. Perhaps, though, Alphabet/Waymo is leaving a promising opportunity on the table with the decision to retreat somewhat from big rigs. Other companies, such as Tesla, have been assertive with such products.
