Morgan Stanley: Waymo Mileage Below Expectations, Google Agent Integration is Key to Revaluation

Deep Tide TechFlow reports, according to Tide Research, Morgan Stanley's October 6, 2026 research note indicates that Waymo's mileage in the first half of the year was approximately 3% below expectations, with San Francisco, Phoenix, and Austin all falling short of the model projections. Morgan Stanley has raised its 2028 mileage forecast by about 2% and estimates Waymo's revenue to reach $20 billion by 2032, with a fleet size of 120,000 vehicles. Waymo averages approximately 370,000 miles per accident, about five times that of human drivers in the U.S. Morgan Stanley maintains an overweight rating for Alphabet, with a target price of $400 and a current stock price of $347.68. Morgan Stanley believes Alphabet needs to revalue its multiples based on intelligent agent integration, as Waymo represents an undervalued differentiated advantage in intelligent agents. The Gemini Agent may integrate calendar and email in the future, pre-planning Waymo trips. Waymo's mileage faces short-term pressure, but urban expansion and intelligent agent integration are key to Alphabet's revaluation.