Alphabet ( GOOGL Quick Quote GOOGL - Free Report) is enhancing its Google smart home devices portfolio on the back of new feature updates and releases. Notably, Google unveiled Fuchsia version 14, a preview update of its in-house operating system, for the Nest Hub series. Further, the new version, available to those enrolled in the Preview Program, enhances Matter support by improving transition time handling, color-related commands, matter update group support and updated subscriptions to all device fabrics. Additionally, Fuchsia version 14 brings improvements to Nest Hub’s Wi-Fi and Bluetooth connectivity, enabling FastUDP on all platforms, addressing media playback time inaccuracy, resuming Bluetooth audio after video calls and improving latency. Alphabet is expected to gain solid traction across users of smart home devices customers on the back of its latest move. Growth Prospects
Apart from the latest launch, Alphabet announced that Google’s smart home controller app, Google Home, will be available to everyone, with upgraded features including a new Favorites tab, improved camera interface, support for new device types and iPhone integration for Matter devices.
Additionally, Google enabled users to transfer their oldest Nest cameras to Google Home, with the Nest Cam Indoor being the first to do so, followed by the Nest Cam Outdoor. All the above-mentioned endeavors are likely to strengthen the company’s presence in the booming smart home devices market. Per a Fortune Business Insights report, the global smart home device market is expected to reach $338.28 billion by 2030, witnessing a CAGR of 20.1% during the period of 2023-2030. We believe Alphabet’s growing prospects in the promising smart home devices market will likely instill investor optimism in the stock. Alphabet has gained 55.2% on a year-to-date basis compared with the industry’s rise of 54.7%. Moreover, all these launches will aid the Google Services segment’s performance, which constitutes the majority of total revenues. In third-quarter 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. Strength in the underlined segment will likely aid its overall financial performance in the upcoming period. Our model estimate for fourth-quarter 2023 total revenues is pegged at $81.95 billion, indicating year-over-year growth of 7.8%. Stiff Competition
We note that the expanding smart home devices portfolio will continue to aid Alphabet to compete well with some notable industry players like
Amazon ( AMZN Quick Quote AMZN - Free Report) and Apple ( AAPL Quick Quote AAPL - Free Report) , which are also making concerted efforts to gain a solid footing in the smart home market space. Notably, Amazon expanded its family of Echo devices by introducing Echo Show 8, Echo Hub and Echo Frames, which are expected to deliver customized, proactive and intuitive Alexa experiences. Further, Amazon infused generative AI into the Fire TV ecosystem to enable voice search, personalized recommendations and personalized content search based on specific preferences. Meanwhile, Apple’s release of a second-generation powerful smart speaker, HomePod, which boasts advanced computational audio and Siri intelligence, immersive Spatial Audio tracks, allowing users to manage tasks, create automation and check room temperature and humidity, remains noteworthy. Additionally, Apple released HomePod software update 17 and is set to release version 17.1, allowing users to mute phone calls and use HomePod minis or full-size speakers as speakers with Apple TV. Zacks Rank & A Key Pick
Currently, Alphabet carries a Zacks Rank #3 (Hold).
A better-ranked stock in the broader technology sector is Badger Meter ( BMI Quick Quote BMI - Free Report) , which currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Shares of Badger Meter have gained 35.2% in the year-to-date period. BMI’s long-term earnings growth rate is currently projected at 20.39%.