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Alphabet Roundup: Working with Publishers, Retailers & More

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Alphabet (GOOGL - Free Report) shares have moved down 4.9% in the last month. Here are some of the stories that helped offset the negative news flow on China-

Cozying Up With Publishers

Google has launched a news reading service called Subscribe with Google to capitalize on publishers’ recent disenchantment with Facebook , as it started increasing focus on posts from family and friends. There are 17 initial partners including FT.com, The Washington Post, McClatchy Company publications and others.

What’s more, Google has agreed to transfer 95% of what is generated to publishers, except for subscriptions coming through the Google Play Store, in which case they’ll get a smaller 85%. But this is still significantly higher than the 70% paid out to date.

Its advanced artificial intelligence capabilities will also offer a “propensity to subscribe” tool, with a News Consumer Insights dashboard providing additional reader analysis to identify subscription opportunities.

It’s also creating a Disinfo Lab with Harvard's Kennedy School and along with Poynter Institute, Stanford University and the Local Media Association, it is launching an organization called MediaWise that will focus on developing digital literacy in the youth.

Google has earmarked $300 million over three years that it will use to support various projects facilitating the digitization of journalism.  

Meanwhile in the EU, Google has asked publishers to obtain permission on its behalf to collect and use personal information for ad targeting as required by the soon-to-be-enforceable GDPR. This is being read in different ways, but Google would likely be in the position of both the controller and processor of that data.Under GDPR rules, the party determining the purposes and means of personal data processing is a “controller” with the party actually doing that work on its behalf according to its guidelines being the “processor.” Since the controller is required to ensure that processor contracts are in compliance, it could mean additional paper work and complexities for publishers.

Supporting Retailers

Google has been working with leading retailers including Target, Walmart, Ulta Beauty, Costco and Home Depot to launch a system that can help customers search and buy products across a range of devices including voice-activated ones.

The service is enabled through product listing across Google Search, Google Express shopping service, inside the Google Assistant app for smartphones and on smart speakers like the Google Home. So customers can add to their carts no matter where they are or which Google device they appear to be using at the time.

Google can also bring additional online shopping experiences to these retailers including things like1-click re-ordering, personalized recommendations and basket-building that Amazon offers, especially on its Echo devices.

The initiative will help retailers take on Amazon and will generate additional revenue for Google.

Moving the Driverless Car Forward

In another sign that the company is ready to diversify the cars in its fleet, Waymo announced that it would start testing up to 20K of the newly-launched Jaguar I-PACE electric vehicles within the first two years of production for inclusion in its next fleet by 2020.Jaguar's I-PACE is the first electric vehicle from India's Tata Motors.

Earlier, it hinted that an agreement with Honda Motors was afoot. Other companies that could work with the company include Volkswagen and Hyundai Motor.

The developments are encouraging given that Uber’s self-driving car killed a pedestrian in Arizona earlier this month that resulted in the suspension of its testing license in the state and calls for regulation of self-driving cars. Toyota Motors also withdraw its self-driving test vehicles on these concerns. Waymo remains extremely confident however, and is on track to launch a self-driving taxi service in the Phoenix, Arizona area within a few months, before a broader rollout.

Separately, Google’searly-stage venture fund Gradient Ventures led a $6 million funding round in Scotty Labs, a nine-person startup focused on remote control of self-driving cars.

And in New Zealand, Google founder Larry Page’s investment in Kitty Hawk appears to be paying off with the company unveiled Cora, a flying taxi with speeds of up to 150 kmh (93 mph), a range of 100 kilometers and vertical takeoff. Others in the flying car race include Chinese firm EHang, Airbus and Uber.

Managing the Street

India has denied permission to Google to roll out its Street View service in the country citing security concerns. Google was looking to make the service, which offers a panoramic view of streets and their surroundings, available as part of its Google Maps and Google Earth apps.

Figuring out street addresses in rapidly expanding or unplanned municipalities is however a major challenge for digital businesses, which may be looking to deliver goods and/or services purchased online. Increasingly, this messes with logistics and costs both time and money.  So Google, Amazon, startups and others are working on solutions. Google for example has launched what it calls a “plus code,” which comprises a "six-character + city" format that can be generated, shared and searched by anyone, including third-party apps.

Another tool it unveiled is called Smart Address Search, which uses machine learning to help a user find a location on the basis of nearby landmarks. It also helps people locate long and complicated addresses.

 

Other Imp News-

  • The court has allowed Oracle (ORCL - Free Report) to revive its multi-billion Case Against Alphabet over Java
  • Even as China prepares to attain AI leadership by 2025, 3,031 Alphabet employees  petitioned the company to get out of the Pentagon’s AI program that harnesses AI for video analysis that could improve drone targeting
  • Alphabet is working with farmers to determine how AI can be used to improve crop yields.
  • Google successfully pulled Shopify from Amazon (AMZN - Free Report) as the company has now chosen the Google Cloud for most of its infrastructure needs although it will continue to use Amazon for some things

Alphabet has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

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