In a bid to bolster presence in the healthcare sector, Alphabet’s Inc. (GOOGL - Free Report) division, Google recently teamed up with Chicago-based, American Medical Association (“AMA”). The latest partnership has decided to launch a medical and health data challenge which invites innovative ideas for developing data sharing from health monitoring devices — for instance a mobile app or wearable device that can make it easier for people with a chronic disease to share data with doctors.
With the Google-AMA challenge, the three best ideas submitted will win a combined $50,000 in credit for Google Cloud.
Patient generated data will help AMA to improvise the medical system by improving patient-doctor relationship. Further, this will help in enhancing clinical outcomes, physician workflow and reduction in healthcare related costs.
Google aims to provide an easier and a smoother mode of sharing medical records such as historical lab results related to any disease. This will help patients to carry their case history in a computer readable format, making it a convenient and a hassle free process.
We believe the latest idea of utilizing medical data shared by easy to use app or device will boost Google’s healthcare product portfolio.
Coming to the price performance, shares of Alphabet have returned 21.1% over a year, outperforming the industry’s rally of 8.1%.
Healthcare Sector Holds Promise
Per a report from Markets and Markets, the IoT healthcare market is expected to grow at a CAGR of 30.8% between 2017 and 2022 and will reach $158.07 billion by 2022. Therefore, we believe that Google, with its ongoing initiatives, is well poised to tap the growth opportunity.
Recently, Google launched Cloud Healthcare API that provides a solution to manage key healthcare data types like HL7, FHIR and DICOM. The product also ensures the usage of data for analytics and machine learning in the cloud. The aim is to address the interoperability challenges in healthcare data which is very similar to that of the latest partnership.
Further, the company expanded its medical conditions database by almost doubling the number of health conditions listed on its search platform.
Earlier, Google introduced an open platform called Google Fit which enables users to monitor fitness data, and help developers build smarter apps and devices.
Additionally, the company partnered with Johnson & Johnson to develop surgical robots.
With the latest move, Google has strengthened its competitive position against Amazon (AMZN - Free Report) and Apple (AAPL - Free Report) .
Last year, Amazon partnered with Merck to create virtual diabetes support with the help of its voice automated assistant, Alexa. The aim was to help those with diabetes provide proper management of disease at home and hospital with the help of generated data.
Recently, Apple announced an expansion of its health records product to 40 health systems and 300 hospitals. The aim behind this was to make the patient’s medical information, like lab tests and immunizations, available on his/her iPhone.
Zacks Rank & Another Stock to Consider
Currently, Alphabet carries a Zacks Rank #2 (Buy).
Investors interested in the broader technology sector can consider another top-ranked stock like Twitter (TWTR - Free Report) . The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Twitter is currently pegged at 21.5%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>