Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  Nasdaq  >  Alphabet    GOOGL


News SummaryMost relevantAll newsOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Google Commits $1 Billion To Housing -- WSJ

share with twitter share with LinkedIn share with facebook
share via e-mail
06/19/2019 | 02:48am EDT

By Nour Malas

Alphabet Inc.'s Google said it would commit $1 billion to boost housing construction in the San Francisco Bay Area, the latest in a series of commitments by tech companies to address an affordability crisis in the region.

Google Chief Executive Sundar Pichai announced the moves Tuesday in a blog post in which he said the commitment will include the repurposing of $750 million of company-owned land from commercial to residential use on which an estimated 15,000 units will be built, across all income levels.

Google will also create a $250 million fund for loans and other types of financing. The funds will go to developers to help them preserve affordable housing and build new homes, including at least 5,000 new below-market-rate units, Mr. Pichai said.

"As we work to build a more helpful Google, we know our responsibility to help starts at home," the CEO wrote. The company will also give $50 million through its charitable arm, Google.org, to nonprofits working to address homelessness and displacement, he said.

The world's biggest technology companies are facing pressure to turn their attention to their hometowns on the West Coast where a tech-driven jobs boom has strained a housing market already short on supply. Rising rents around tech hubs from Seattle to Silicon Valley have pushed out low-to-middle-income workers from once-affordable neighborhoods, helping fuel widespread homelessness.

Cities and states struggling to stem these issues have increasingly turned to the tech industry for help. In California, Gov. Gavin Newsom, who praised Google's announcement in a statement, has specifically called on Silicon Valley to invest in helping address the state's housing shortage, which he estimates at 3.5 million homes.

Google's new housing play comes at a time when the company is growing its footprint in the region. It is building a new campus in its hometown of Mountain View, Calif., which extracted a commitment from the company to build affordable housing as part of its expansion. Google is also in talks with San Jose for a potential new campus that would bring 20,000 employees to the city. Housing and displacement have been flashpoints for local communities there.

Critics say these investments don't go far enough. "There is clearly still more it needs to do, but it's a very welcome first step towards fully addressing its impact on rent hikes, evictions and overcrowding," said Jeffrey Buchanan, director of public policy at Working Partnerships USA, a nonprofit focused on addressing inequality.

According to a study the group commissioned, the city of San Jose alone would need more than 17,650 new homes -- at least 5,200 of them affordable -- to offset rent increases expected from new demand for housing as Google builds out in the city.

The industry at large has taken note: In January, a group of Bay Area companies and philanthropists including Facebook Inc. CEO Mark Zuckerberg raised $260 million to help build at least 8,000 homes in the region, part of what they envision as a $500 million fund for affordable housing. A separate fund seeded by LinkedIn, the Cisco Foundation and other tech philanthropists has raised $62 million.

In the Seattle area, Microsoft Corp. in January pledged $500 million to support affordable housing: $475 million for construction loans and $25 million in grants to address homelessness.

Microsoft and Amazon.com Inc. last week gave $5 million each to a Seattle nonprofit that operates housing and support services for homeless people. Amazon also said it would put $3 million toward affordable-housing initiatives in Arlington, Va., the site of its planned new headquarters.

In Northern California, the Bay Area has led the nation in home prices for the past two decades, and new jobs continue to far outpace the addition of new homes. Proposed legislation aimed at making it easier to build more dense housing in California has stalled amid opposition, mostly from suburban homeowners resistant to new development.

Write to Nour Malas at nour.malas@wsj.com

Stocks mentioned in the article
ChangeLast1st jan.
ALPHABET -0.58% 1146.74 Delayed Quote.10.38%
CISCO SYSTEMS -0.71% 57.21 Delayed Quote.32.98%
FACEBOOK -1.00% 201.8 Delayed Quote.53.94%
MICROSOFT CORPORATION -0.59% 136.27 Delayed Quote.34.96%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on ALPHABET
03:07aVolvo Cars to cut costs as trade war dents profits
02:40aSAP says big margin gains to wait until 2020, shares down
07/17ALPHABET : Australian developer LendLease lands $15 billion project with Google;..
07/17Tech Down, But Losses Are Limited, Amid Earnings Optimism -- Tech Roundup
07/17Amazon under EU antitrust fire over use of merchant data
07/17EXPLAINER : What is the EU's antitrust investigation into Amazon about?
07/17AMAZON COM : Faces Probe in Europe Over Third-Party Selling -- 3rd Update
07/17CooTek Says Some Apps Temporarily Disabled by Google
07/17GLOBAL MARKETS LIVE : BHP Group, Netflix, Amazon, LVMH…
07/17AMAZON COM : Faces Probe in Europe Over Third-Party Selling -- 2nd Update
More news
Financials (USD)
Sales 2019 161 B
EBIT 2019 34 897 M
Net income 2019 32 098 M
Finance 2019 129 B
Yield 2019 -
P/E ratio 2019 25,2x
P/E ratio 2020 21,4x
EV / Sales2019 4,15x
EV / Sales2020 3,45x
Capitalization 796 B
Duration : Period :
Alphabet Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends ALPHABET
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus BUY
Number of Analysts 44
Average target price 1 336,15  $
Last Close Price 1 146,74  $
Spread / Highest target 30,8%
Spread / Average Target 16,5%
Spread / Lowest Target 0,28%
EPS Revisions
Lawrence E. Page Chief Executive Officer & Director
Sergey Mikhaylovich Brin President & Director
John LeRoy Hennessy Chairman
Ruth Porat Chief Financial Officer & Senior Vice President
Eric E. Schmidt Director & Technical Advisor
Sector and Competitors
1st jan.Capitalization (M$)
ALPHABET10.38%795 981
BAIDU-28.39%39 755
NAVER CORP--.--%14 735
YANDEX44.68%12 924
SOGOU INC-26.10%1 518