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Alphabet (GOOGL) Announces New Updates for Google Messages
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Alphabet’s (GOOGL - Free Report) Google recently added a slew of new features to the Google Messages app. Google introduced a “plus” shortcut in addition to the Gallery and Magic Compose features.
The new updates feature a redesign, including a left-facing compose field and an emoji shortcut, along with Magic Compose, a new Gallery icon and a plus menu at the right.
Further, Google added a separate button for voice messages and a new contact page UI that displays the user’s picture, name and phone number, with shortcuts for calling, video chat, the full Contacts page and search at the top.
Moreover, the company is set to release several other features for Google Messages, namely “Videos, links & more” and “Only send SMS & MMS messages”. While the former allows users to access videos by opening Search, the latter lets users verify and check the status of end-to-end encryption.
Alphabet is expected to gain solid traction across Android users with its latest move.
The latest move bodes well for Alphabet’s deepening focus on strengthening its Google Services segment.
Google recently introduced a notification feature to its earlier added birthday reminder feature for Google Contacts, allowing users to receive notifications for any "Significant date" added to their contacts through the overflow menu or by scrolling down the bottom.
Further, it added a new color palette feature to its Google Maps application. The feature uses a lighter green color for parks and nature in contrast with the off-white roads. It also uses a white tone for street crossings, which now appear at more zoomed-out levels.
Additionally, Google introduced AI-powered features, including Stacks, in Google Photos to improve photo organization and categorization, reducing clutter in users' galleries.
Also, it added a new feature for text formatting to its Android and web note-taking application, Google Keep. This new feature offers a more complex approach to documents, allowing users to use bold or italicized text for easier understanding.
Bottom Line
We believe that all the abovementioned endeavors are likely to strengthen Alphabet’s Android offerings, which will boost its Google Services segment, which accounts for the majority of total revenues.
In the third quarter of 2023, Google Services’ revenues increased 10.8% year over year to $67.99 billion, accounting for 88.6% of total revenues.
Our model projects fourth-quarter 2023 Google Services revenues at $72.79 billion, indicating growth of 7.3% from 2022.
Strong momentum in the underlined segment is likely to aid its overall financial performance in the upcoming period. This will instill investor optimism in the stock.
Our model estimate for fourth-quarter 2023 total revenues is pegged at $81.95 billion, indicating year-over-year growth of 7.8%.
The company has gained 57% year to date compared with the industry’s rise of 56.4%.
Zacks Rank & Stocks to Consider
Currently, Alphabet carries a Zacks Rank #3 (Hold).
Image: Bigstock
Alphabet (GOOGL) Announces New Updates for Google Messages
Alphabet’s (GOOGL - Free Report) Google recently added a slew of new features to the Google Messages app. Google introduced a “plus” shortcut in addition to the Gallery and Magic Compose features.
The new updates feature a redesign, including a left-facing compose field and an emoji shortcut, along with Magic Compose, a new Gallery icon and a plus menu at the right.
Further, Google added a separate button for voice messages and a new contact page UI that displays the user’s picture, name and phone number, with shortcuts for calling, video chat, the full Contacts page and search at the top.
Moreover, the company is set to release several other features for Google Messages, namely “Videos, links & more” and “Only send SMS & MMS messages”. While the former allows users to access videos by opening Search, the latter lets users verify and check the status of end-to-end encryption.
Alphabet is expected to gain solid traction across Android users with its latest move.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Strengthening Google Services
The latest move bodes well for Alphabet’s deepening focus on strengthening its Google Services segment.
Google recently introduced a notification feature to its earlier added birthday reminder feature for Google Contacts, allowing users to receive notifications for any "Significant date" added to their contacts through the overflow menu or by scrolling down the bottom.
Further, it added a new color palette feature to its Google Maps application. The feature uses a lighter green color for parks and nature in contrast with the off-white roads. It also uses a white tone for street crossings, which now appear at more zoomed-out levels.
Additionally, Google introduced AI-powered features, including Stacks, in Google Photos to improve photo organization and categorization, reducing clutter in users' galleries.
Also, it added a new feature for text formatting to its Android and web note-taking application, Google Keep. This new feature offers a more complex approach to documents, allowing users to use bold or italicized text for easier understanding.
Bottom Line
We believe that all the abovementioned endeavors are likely to strengthen Alphabet’s Android offerings, which will boost its Google Services segment, which accounts for the majority of total revenues.
In the third quarter of 2023, Google Services’ revenues increased 10.8% year over year to $67.99 billion, accounting for 88.6% of total revenues.
Our model projects fourth-quarter 2023 Google Services revenues at $72.79 billion, indicating growth of 7.3% from 2022.
Strong momentum in the underlined segment is likely to aid its overall financial performance in the upcoming period. This will instill investor optimism in the stock.
Our model estimate for fourth-quarter 2023 total revenues is pegged at $81.95 billion, indicating year-over-year growth of 7.8%.
The company has gained 57% year to date compared with the industry’s rise of 56.4%.
Zacks Rank & Stocks to Consider
Currently, Alphabet carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Badger Meter (BMI - Free Report) , Arista Networks (ANET - Free Report) and Snowflake (SNOW - Free Report) . While Badger Meter sports a Zacks Rank #1 (Strong Buy), Arista Networks and Snowflake each carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Badger Meter have rallied 36.5% year to date. BMI’s long-term earnings growth rate is currently projected at 20.39%.
Shares of Arista Networks have surged 79.4% year to date. The long-term earnings growth rate for ANET is currently projected at 19.77%.
Shares of Snowflake have risen 17.7% year to date. SNOW’s long-term earnings growth rate is currently projected at 64.74%.