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Alphabet's (GOOGL) Google Boosts Nest Cams With New Feature

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Alphabet’s (GOOGL - Free Report) division Google has bolstered the home security capabilities of Nest Cams with the introduction of a garage door detection feature.

Notably, Nest Cams will now be able to notify homeowners every time their garage door opens and closes. The new feature will also alert users if their garage remains open for an extended time.

Also, the feature will provide information on the household vehicle’s comings and goings. Additionally, the feature may prove useful in detecting attempted burglaries.

Notably, the garage door monitoring feature will be initially available in the Nest Cam (battery) and Nest Cam (indoor, wired) models, with the battery-powered camera requiring a hardwired connection for garage monitoring.

Efforts to Bolster Google Nest

The latest move is in sync with Google’s efforts toward expanding its Nest product family, consisting of smart home products like smart speakers, smart displays, thermostats, smoke detectors, smart doorbells, cameras and smart locks.

Google in collaboration with ADT (ADT - Free Report) recently introduced a do-it-yourself security system called ADT Self Setup, which features sensors, a keypad and Nest connectivity. The system comprises two parts, the security equipment from ADT and Google's Nest Cameras, doorbells, and other smart home accessories.

Further, the company introduced Nest Doorbell (wired, 2nd gen) with smarter features. It can send quicker, more precise warnings and distinguish between people, parcels, dogs, and vehicles with the use of Google's integrated machine learning.

It also introduced the Nest Wifi Pro router, a new high-performance Wi-Fi 6E tri-band mesh router system, which helps its customers to get access to the 6 GHz radio band, enabling Wi-Fi up to two times faster than Wi-Fi 6.

Notably, the abovementioned endeavors are likely to aid Google in capitalizing on the growth prospects present in the booming smart home market, which, per a report from Grand View Research, is expected to witness a CAGR of 27% between 2022 and 2030.

Moreover, Google’s deepening focus on this promising market is likely to boost its prospects and subsequently aid its parent Alphabet in winning investors’ confidence in the days ahead.

Coming to the price performance, shares of GOOGL have declined 25.8% in the past year, compared with the Computer and Technology sector’s decline of 13.3%.

Google Services Segment in Focus

We note that growing efforts to strengthen Google Nest offerings are expected to contribute well to the performance of Google Services segment.

In fourth-quarter 2022, the segment generated $67.84 billion revenues, accounting for 89.2% of the total revenues.

We believe the strengthening performance of Google Services will likely aid Alphabet’s total revenue growth.

The Zacks Consensus Estimate for the company’s 2023 revenues is pegged at $247.1 billion, indicating growth of 5.6% from 2022.

Zacks Rank and Stocks to Consider

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

Some better-ranked stocks in the broader technology sector are Arista Networks (ANET - Free Report) and Salesforce (CRM - Free Report) . Both Arista Networks and Salesforce sport a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Arista Networks shares have risen 18.9% in the past year. The long-term earnings growth rate for ANET is currently projected at 14.17%.

Salesforce shares have declined 6.5% in the past year. CRM’s long-term earnings growth rate is currently projected at 16.75%.

 


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