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GOOGL, AAPL, MSFT & AMZN Look to Keep Up With the EdTech Fad
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Technology bigwigs like Google-parent Alphabet (GOOGL - Free Report) , Microsoft (MSFT - Free Report) and Apple (AAPL - Free Report) are vying for a larger pie of the rapidly growing education technology (EdTech) market. E-commerce giant Amazon (AMZN - Free Report) is also making big strides in the space.
Per Research And Markets, the global EdTech market is forecast to see a CAGR of 18.3% to reach $40.9 billion between 2017 and 2022.
These companies are working on offering low-priced quality devices and productivity tools to grab market share. As an expansion of their educational initiatives, the players are also resorting to partnerships and acquisitions.
Google Reigns Supreme
Google has been a frontrunner in this market, thanks to its Chromebook.
The company has been undertaking various initiatives to bring its Chromebook platform, tools and services to classrooms. Its browser-based software like Classroom, Forms and Quizzes as well as G Suite for Education is a step in that direction. Last year, Google launched a Chrome OS tablet for schools..
Recently, Google announced plans to launch Chromebook App Hub from Google for Education later in 2019. The App Hub is designed to provide an easier and centralized way to find educational tools and apps that can be used in classrooms.
At the beginning of the year, Google reported that 80 million educators and students are using G Suite for Education, 40 million students and teachers are on Google Classroom and 30 million are using Chromebooks.
The company is also resorting to acquisitions to maintain lead in the education market. Last November, Google took over Baltimore-based Workbench, which provides an online library of lessons and projects to be used in classrooms. In 2015, Google acquired Launchpad Toys, a storytelling tool to help children create cartoons.
However, new offerings from the likes of Apple and Microsoft are a threat.
Apple used to dominate the EdTech industry on strength of its iPad and Mac computer offerings. However, the launch of the lower-priced Chromebook was quite a blow.
The company has been designing a range of products, services and programs to cater to education needs. The iPhone maker supports mobile learning and enables students and teachers to share and distributeeducation-related materials through iTunes U.
Apple recently launched an ultra-thin iPad Air, the performance of which is expected to be 70% better. It also launched a 7.9-inch iPad mini, which is 25% brighter and has the highest pixel density among any of the iPads. Further, Apple came up with an upgraded iMac lineup that is expected to deliver superior performance in terms of computing and graphics.
Microsoft is looking to improve educational outcomes with its ever-expanding platforms and tools. Notably, the company has come up with a lower-priced Surface laptop and special version of Windows 10 for students.
On the last earnings call, management mentioned that the company is expanding its footprint in education with its productivity suite Office 365, which is also seen as Microsoft’s answer to Google’s G Suite.
The company is also bringing innovation in hardware and software for improving “learning outcomes from the more collaborative classrooms with Teams to personalized learning tools in OneNote, to social learning with Flipgrid, to affordable easy-to-manage Windows 10 devices.”
Amazon, a relatively new entrant in the space, has taken a different approach to address the needs of the education industry through its cloud platform, Amazon Web Services (AWS), which is rapidly replacing physical storage in schools.
In 2016, the company launched an open education resource platform, Amazon Inspire, which helps educators discover, gather and share educational resources with their communities. Last January, the company restored the controversial sharing feature.
In a bid to gain further momentum in the kids and students’ section, Amazon launched book app for kids called Amazon Rapids in 2016 and unveiled Prime Book Box last year. Apart from these, the company introduced FreeTime on Alexa and the Echo Dot Kids Edition, exclusively for kids.
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
Image: Bigstock
GOOGL, AAPL, MSFT & AMZN Look to Keep Up With the EdTech Fad
Technology bigwigs like Google-parent Alphabet (GOOGL - Free Report) , Microsoft (MSFT - Free Report) and Apple (AAPL - Free Report) are vying for a larger pie of the rapidly growing education technology (EdTech) market. E-commerce giant Amazon (AMZN - Free Report) is also making big strides in the space.
Per Research And Markets, the global EdTech market is forecast to see a CAGR of 18.3% to reach $40.9 billion between 2017 and 2022.
These companies are working on offering low-priced quality devices and productivity tools to grab market share. As an expansion of their educational initiatives, the players are also resorting to partnerships and acquisitions.
Google Reigns Supreme
Google has been a frontrunner in this market, thanks to its Chromebook.
The company has been undertaking various initiatives to bring its Chromebook platform, tools and services to classrooms. Its browser-based software like Classroom, Forms and Quizzes as well as G Suite for Education is a step in that direction. Last year, Google launched a Chrome OS tablet for schools..
Recently, Google announced plans to launch Chromebook App Hub from Google for Education later in 2019. The App Hub is designed to provide an easier and centralized way to find educational tools and apps that can be used in classrooms.
At the beginning of the year, Google reported that 80 million educators and students are using G Suite for Education, 40 million students and teachers are on Google Classroom and 30 million are using Chromebooks.
The company is also resorting to acquisitions to maintain lead in the education market. Last November, Google took over Baltimore-based Workbench, which provides an online library of lessons and projects to be used in classrooms. In 2015, Google acquired Launchpad Toys, a storytelling tool to help children create cartoons.
However, new offerings from the likes of Apple and Microsoft are a threat.
Alphabet Inc. Revenue (TTM)
Alphabet Inc. Revenue (TTM) | Alphabet Inc. Quote
Apple Eyes a Comeback
Apple used to dominate the EdTech industry on strength of its iPad and Mac computer offerings. However, the launch of the lower-priced Chromebook was quite a blow.
The company has been designing a range of products, services and programs to cater to education needs. The iPhone maker supports mobile learning and enables students and teachers to share and distributeeducation-related materials through iTunes U.
Apple recently launched an ultra-thin iPad Air, the performance of which is expected to be 70% better. It also launched a 7.9-inch iPad mini, which is 25% brighter and has the highest pixel density among any of the iPads. Further, Apple came up with an upgraded iMac lineup that is expected to deliver superior performance in terms of computing and graphics.
Apple Inc. Revenue (TTM)
Apple Inc. Revenue (TTM) | Apple Inc. Quote
Microsoft Looks to Catch Up
Microsoft is looking to improve educational outcomes with its ever-expanding platforms and tools. Notably, the company has come up with a lower-priced Surface laptop and special version of Windows 10 for students.
On the last earnings call, management mentioned that the company is expanding its footprint in education with its productivity suite Office 365, which is also seen as Microsoft’s answer to Google’s G Suite.
The company is also bringing innovation in hardware and software for improving “learning outcomes from the more collaborative classrooms with Teams to personalized learning tools in OneNote, to social learning with Flipgrid, to affordable easy-to-manage Windows 10 devices.”
Microsoft Corporation Revenue (TTM)
Microsoft Corporation Revenue (TTM) | Microsoft Corporation Quote
Amazon: A Key Challenger
Amazon, a relatively new entrant in the space, has taken a different approach to address the needs of the education industry through its cloud platform, Amazon Web Services (AWS), which is rapidly replacing physical storage in schools.
In 2016, the company launched an open education resource platform, Amazon Inspire, which helps educators discover, gather and share educational resources with their communities. Last January, the company restored the controversial sharing feature.
In a bid to gain further momentum in the kids and students’ section, Amazon launched book app for kids called Amazon Rapids in 2016 and unveiled Prime Book Box last year. Apart from these, the company introduced FreeTime on Alexa and the Echo Dot Kids Edition, exclusively for kids.
Amazon.com, Inc. Revenue (TTM)
Amazon.com, Inc. Revenue (TTM) | Amazon.com, Inc. Quote
Zacks Rank
Google, Apple, Microsoft and Amazon carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>