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Will a New Chromecast by Google Take the Market by Storm?

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There’s a war raging among tech companies to take total control of every home. So, the market is booming with video streaming devices and home automation systems.

To be a forerunner, Alphabet Inc. (GOOGL - Free Report) will reportedly unveil a brand new Chromecast, the streaming dongle, at an event to be held on Oct 4, in San Francisco. And this is just one of the  plenty of other products slated for release on that big day. Moreover, the Android-powered VR platform Daydream is slated for release this fall. The company may also unveil two new smartphones under Google’s new Pixel brand.

Google had rolled out its first Chromecast in 2013. Last year, the company released its second generation Chromecast which went on to become a major hit. However, the people were waiting fora completely new upgrade at an affordable price.

Some Details

Though information on the product is limited, the new streaming stick is expected to be named Chromecast Ultra or Chromecast Plus. It is anticipated to support 4K resolution video and be priced at $69 versus the old devices that were priced at only $35.

From the design perspective, the new Chromecast will be the same as the old version except that the new device will carry a “G” or Google logo in place of the old Chrome logo.

On Monday, Chromecast's main competitor Roku announced its new lineup of media streaming devices, with varying features. Though essentially similar to Google’s Chromecast, Roku’s new premier streaming box also supports 4K streaming but is priced at $80.

If rumors are to be believed, Google's new Chromecast would be a more affordable option than Roku's 4K offering device.

Bottom Line

Now the question that arises is: will Google's lower price help push Chromecast over Roku’s media streaming device? Or will Roku’s smarter features attract its fans? The battle is just heating up, and it will be an interesting one for investors to watch.

We note that Google has tried to build up suspense around its upcoming fall event. There are high chances that the company will come up with a big launch and catch its competitors off guard.

Google currently carries a Zacks Rank #3 (Hold). Stocks worth considering in the industry include Facebook, Inc. (FB - Free Report) , LinkedIn Corporation (LNKD - Free Report) and Yirendai Ltd. (YRD - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Facebook witnessed a 0.51% dip in its last day’s stock price. On average, the company delivered a positive earnings surprise of 18.25% in the trailing four quarters.

LinkedIn witnessed a 0.13% surge in its last day’s stock price. On average, the company delivered a positive earnings surprise of 115.2% in the trailing four quarters.

Yirendai witnessed a 2.07% decline in its last day’s stock price. On average, the company delivered a negative earnings surprise 187.7% in the trailing four quarters.

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