Alphabet’s (GOOGL Quick QuoteGOOGL - Free Report) Google recently unveiled new features and updates for its Pixel Watch and Pixel Watch 2 series.

This includes a new "Vibration watch" feature, allowing users to tap their watch face with two fingers to receive time as a series of haptic vibrations, with two vibration types: Digits and Terse.

Further, Google brings auto-brightness improvement to the Pixel Watch series, enhancing the user's experience by allowing them to easily distinguish between different levels of brightness.

Alphabet is expected to gain solid traction across smartwatch users on the back of its latest move.

Pixel Watch in Focus

Apart from the latest updates, the first-generation Pixel Watch now features a new Fitbit Workout UI, replacing the cramped layout of the previous version. The updated layout places key stats in a list that can be swiped up/down, making it more glanceable during exercise.

Further, Google upgraded the Pixel Camera app on Wear OS, which now allows users to switch between various photo and video modes on their Pixel Watch, including Night Sight, Portrait, Photo, Video, Slow Motion and Time Lapse, directly from the Pixel Watch's hamburger button.

All the above-mentioned endeavors will enable the company to capitalize on growth opportunities present in the global smartwatch market. Per a Fortune Business Insights report, the global smartwatch market is anticipated to reach $77.22 billion by 2032, witnessing a CAGR of 14.8% between 2023 and 2030.

Moreover, strengthening the Pixel Watch series will likely aid Alphabet to bolster its Google Services segment, which remains a key growth driver for the company. Its shares have rallied 46.6% in the past year compared with the Zacks Computer & Technology sector’s growth of 43.7%.

The strengthening Google Services segment is expected to aid its overall financial performance in the days ahead.

The Zacks Consensus Estimate for 2024 total revenues stands at $286.52 billion, indicating year-over-year growth of 11.7%.

Stiff Competition

Alphabet’s growing efforts to strengthen the Pixel Watch series are likely to intensify competition for other incumbents like Apple (AAPL Quick QuoteAAPL - Free Report) and Garmin (GRMN Quick QuoteGRMN - Free Report) , which are leaving no stone unturned to expand their footprint in the smartwatch market.

Notably, Apple introduced a double tap gesture for the Series 9 and Ultra 2 with watchOS 10.1, allowing users to control the devices with just one hand without touching the display and complementing existing gestures like tap, swipe, raise and cover.

Apple’s growing smartwatch offerings increase its adoption rate among smartwatch users, solidifying its position as a market leader in the smartwatch space. Notably, nearly two-thirds of the customers who purchased the Apple Watch during first-quarter fiscal 2024 were first-time customers.

Garmin, on the other hand, is enjoying growing momentum across its adventure watches on the back of feature updates.

Recently, Garmin released new software and feature updates for select smartwatches, including epix (Gen 2), fenix 7, Forerunner, vívoactive 5, and Venu 3 Series. The new software includes features like Multisport Auto Transition, Running Track Database, Sleep Coach, and Jump Rope Activity. It allows users to focus on races, track runs, sleep stages, and other key metrics and offers customizable alert intervals and countdown timers.

Zacks Rank & A Stock to Consider

Currently, Alphabet carries a Zacks Rank #3 (Hold).

A better-ranked stock in the broader technology sector is BlackLine (BL Quick QuoteBL - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of BlackLine have gained 0.7% in the past year. The long-term earnings growth rate for BL is currently projected at 5.50%.