Alphabet shares close higher on Wednesday, Google’s Pixel smartphone manufacturing to be relocated to Vietnam, Nikkei reports

According to a report by Nikkei Asian Review on Wednesday, Alphabet’s Google intends to move its Pixel smartphone production from China to Vietnam by the end of this year, since the tech giant establishes a cost-effective supply chain in Southeast Asia.

Google is to relocate the majority of its American-bound hardware, including the Pixel phones and Google Home smart speakers, out of China, the media reported.

Alphabet shares closed higher for the sixth time in the past eleven trading sessions on NASDAQ on Wednesday. The stock edged up 0.27% ($3.18) to $1,171.02, after touching an intraday low at $1,157.76, or a price level not seen since August 26th ($1,152.96).

Shares of Alphabet Inc have risen 13.08% so far in 2019 compared with a 15.20% gain for the benchmark index, S&P 500 (SPX).

In 2018, Alphabet’s stock went down 1.03%, thus, it outperformed the S&P 500, which registered a 6.24% loss.

According to Nikkei Asian Review, Alphabets Google plans to move certain part of production of the Pixel 3A phone to Vietnam by the end of 2019.

Additionally, part of production of Googles smart speakers is expected to be relocated to Thailand. However, Googles new product development and initial production for its hardware lineup is to remain in China.

Between 8 million and 10 million smartphones are expected to be shipped by Google to Vietnam this year, or two times more compared to 2018. This would turn the Southeast Asian country into a key factor for growth for Google in the smartphone market.

Analyst stock price forecast and recommendation

According to CNN Money, the 40 analysts, offering 12-month forecasts regarding Alphabet Inc’s stock price, have a median target of $1,400.00, with a high estimate of $1,550.00 and a low estimate of $1,225.00. The median estimate represents a 19.55% upside compared to the closing price of $1,171.02 on August 28th.

The same media also reported that at least 35 out of 44 surveyed investment analysts had rated Alphabet Inc’s stock as “Buy”, while 6 – as “Hold”.