Back to top

Analyst Blog

Internet search giant Google Inc. recently announced that its Chromebook will be available at Wal-Mart (WMT - Analyst Report) and Staples (SPLS - Analyst Report) stores.

Acer’s Chromebook will be available in 2,800 Wal-Mart stores across the U.S for $199.0. Further, Staples will offer Chromebooks from Acer, Hewlett-Packard (HPQ - Analyst Report) and Samsung in its 1,500 stores across the U.S.

These stores will join other retailers such as Amazon.com and Best Buy to offer Google’s Chromebook. Also regional stores such as California-based Fry's and Florida-based TigerDirect will start selling Chromebook soon. Google is also planning to expand into overseas markets such as the U.K., France, the Netherlands, Sweden and Australia.

Google introduced its Chromebook in 2011. Initially, it was only available online. Chromebooks run on Google's Chrome operating system (OS) and come with preinstalled cloud-based Google services and products, including Google Docs, Calendar, Search, Gmail, YouTube and Hangouts.

Google’s strategy of making its Chromebook available through leading retailers makes sense as it is facing intense competition from Microsoft’s Windows 8 notebooks and smart devices. We believe that Google may ride out this difficulty based on these initiatives.

IDC estimates that tablet shipments may surpass desktops in 2013 and notebooks in 2014. Total tablet shipments may touch 352.3 million units in 2017, increasing at a compounded annual growth rate (CAGR) of 174.5%.

Currently, all PC makers are battling the slump in the PC market caused by the sluggish economy. In addition, the popularity of tablets running iOS and Android are cannibalizing PC market sales, further deteriorating the scenario.

In the first quarter of fiscal 2013, Google’s gross revenue (including TAC) touched a record $14.4 billion, representing sequential and year-over-year increases of 2.3% and 36.2%, respectively. Excluding the $1.5 billion contribution from Motorola, revenues were up 21.9% from the year-ago quarter.

Google has a Zacks Rank #3 (Hold).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%
STRATTEC SE… STRT 80.24 +3.00%