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Oreo is a type of cookie that contains two chocolate wafers with a sweet creme filling sandwiched in between but that’s “foodology”. When it comes to technology, Oreo is Alphabet Inc.’s (GOOGL - Free Report) latest version of Android.

The company officially launched Android 8.0 Oreo on Monday. Shares of Alphabet barely moved in response to the news but have gained 15.6% in the last year, outperforming the industry’s 12.9% rally.

Google Maintains the Sweet Tradition

Google has been playing with Android names since the rollout of Android 1.5 in 2009. The company has given sweet-themed names to its Android versions and that too in alphabetical order (Cupcake, Donut, Eclair, Froyo, Gingerbread, Honeycomb, Ice Cream Sandwich, Jelly Bean, Kitkat, Lolipop, Marshmallow, Nougat and Oreo).

Alphabet Inc. Net Income (TTM)

Chockablock with New Features

The company’s latest version of Android comes with a host of improvements over Android Nougat including notification dots that enable seeing and responding to notifications right on home screen; faster boot speed, autofill, Android instant apps, downloadable fonts and emoji, printing support, linkable files, Wi-Fi assistant, battery saver, native C/C++ API for high-performance audio, Google Play protect and picture-in-picture.

The updated models of Pixel and Nexus 5X/6P, Pixel C and Nexus Player 4G, will be available over the next several weeks. Also, Android devices from other companies including Samsung, Sony (SNE - Free Report) , HTC, Huawei, Nokia (NOK - Free Report) and Sharp will be updated or have Oreo preinstalled by the end of this year.

Android Has Come a Long Way

Android is the most extensively used mobile operating system in the world, one of the many positives that Google is currently riding on. It is the foremost driver of the company’s mobile initiatives. The company is leveraging its Android OS not just to build search market share but also to drive sales of apps and digital products through Google Play. It continues to bring improvements with each version of the OS, at the same time spurring app development.

When Alphabet’s strategy took off, there were only a few Android apps, while the Apple (AAPL - Free Report) ecosystem was enormous. Currently, the OS is used by more than a billion Android device owners across the world and its app support is bigger than Apple’s. Its app support continues to drive Chromebook sales from all leading device makers into enterprise, academic and other markets.

Google is also taking steps to improve advertising tools by facilitating the linking of search results with apps as well as deep linking between apps. The company connects advertising campaigns across mobile and desktop platforms and that boosts advertisers’ return on investment. Mobile app indexing and Mobile Friendly algorithm change will improve user experience and thus drive the next phase of revenue growth.

Currently, Alphabet is a Zacks Rank #3 (Hold) company. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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