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Alphabet (GOOGL) stock price is moving higher today. The rise is attributed to a long-term cloud partnership between Google and Deutsche Bank AG.
Shares of the American multinational conglomerate Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) continues showing the resilience to scale higher despite the COVID-19 market disruption that has interfered with the normal supply chain. As of July 6, GOOGL shares closed the day trading at $1,499.65, which reciprocated to a rise of around 2.02%, however, in the pre-market the shares were trading around the same level. At the time of writing, GOOGL stock is 1.03% up, at $1,515.02. Meanwhile, Alphabet has entered an important cloud partnership.
During the coronavirus as the company was able to move to remote working for most of the employees, reducing any chance of backlog. The growth is reciprocated in the market performance as in the past twelve months, the GOOGL shares have added 33.39%, 11.97% YTD, 26.81% in the past three months, 3.28% in the last month, and 5.75% in the past five days. Moreover, Alphabet has finally managed to re-enter the trillion-dollar club with a marker cap of $1.03 trillion.
However, the outstanding performance is being hindered by the emergence of other companies in the market offering similar services as itself. The competition has in a way hampered a possible sharp rally as seen with EV automaker Tesla Inc (NASDAQ: TSLA).
Great Deal for Alphabet as Its Cloud Business Gets More Market Adoption
As reported by the media outlet Bloomberg, Alphabet Inc.’s Google and Deutsche Bank AG have announced a 10-year partnership that will see Germany’s bank utilize the American tech company’s cloud computing capabilities.
“The partnership with Google Cloud will be an important driver of our strategic transformation. It is as much a revenue story as it is about cost,” said Deutsche Bank CEO Christian Sewing.
According to the partnership details, Deutsche Bank anticipates making a cumulative profit of approximately $1.1 billion through the ten years. The deal is, however, a huge breakthrough for Google’s side as it tries to showcase its cloud business to the market and its capabilities.
Previously, Google cloud services were only utilized by HSBC Holdings Plc. But it will no longer be the case after this partnership. It is anticipated other companies will get faith in utilizing Google Cloud services in time to come.
“We are excited about our strategic partnership and the opportunity for Google cloud to be helpful to Deutsche Bank and its clients as they grow their business and shape the future of the financial service industry,” said Alphabet CEO Sundar Pichai in a press release.
If the partnership with the Deutsche Bank AG and Google Cloud will initiate a new wave of business wanting to use Google Cloud services, GOOGL shares are looking at a bright future.