Alphabet
’s
GOOGL
division, Google, has been persistently working toward advancing its smart display offerings with strong free features.
Reportedly, the Sleep Sensing feature, which was supposed to become a paid feature on Nest Hub from 2023 onward, is going to remain a free feature throughout 2023.
Notably, Sleep Sensing uses motion sense to track a person’s sleep. It is considered an useful feature for those who don’t like to wear anything on their wrists.
We believe that Google will see a boost in the adoption rate of its Nest Hub with such a useful feature coming absolutely free.
Efforts to Bolster Smart Displays
Apart from the latest move, Google added a feature called “Look and Talk” to its Nest Hub Max device. With the help of this capability, users can look at the onboard camera to activate the microphone for commands without using the “Hey Google” keyword.
The company equipped the Nest Hub Max with the Fuchsia operating system. This remains noteworthy.
It also improved the display experience and released three clock faces for smart displays.
These initiatives are likely to help GOOGL penetrate the rapidly growing smart display market.
Per a report from Straits Research, the market for smart displays is expected to reach $17.81 billion by 2030, witnessing a CAGR of 29% during 2022-2030.
We note that Google’s deepening focus on this booming market will likely aid Alphabet in winning investors’ confidence in the near term.
Notably, shares of Alphabet have lost 40.5% over a year.
Intensifying Competition
In this upbeat scenario, GOOGL faces intense competitive pressure from organizations like
Amazon
AMZN
and
Lenovo
LNVGY
, which are making strong efforts to capitalize on the above-mentioned prospects.
Amazon offers powerful smart displays with the Echo Show series. It is gaining momentum in this booming market on the back of various innovative and useful features of its Echo Show devices. Recently, the company announced three features for its Echo Show smart displays — Gestures, Text-to-Speech and Consolidated Captions.
Lenovo’s smart display provides an enhanced visual experience to users. It is enabled with Google Assistant and designed for smart home applications. The underlined smart display runs on a simplified version of Google’s Android mobile OS, Android Things.
Zacks Rank & Stocks to Consider
Currently, Google’s parent company, Alphabet, carries a Zacks Rank #4 (Sell).
Investors interested in the broader Zacks Computer & Technology sector can consider a better-ranked stock like
Asure Software
ASUR
, which sports a Zacks Rank #1 (Strong Buy) at present. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
Asure Software has gained 26.8% in the year-to-date period. The long-term earnings growth rate for ASUR is projected at 23%.
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