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Alphabet (GOOGL) to Boost Smartwatch Presence With Pixel Watch 2
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Alphabet’s (GOOGL - Free Report) Google has unveiled the Pixel Watch 2 to bolster its smartwatch offerings as well as fitness tracking efforts.
The new Fitbit-powered Pixel watch features a circular design, a battery life of 24 hours with its always-on display active and an advanced quad-core processor.
It is equipped with a Fitbit-backed exercise tracking feature, an upgraded heart rate sensor and a tracking algorithm that captures the heart rate during strenuous exercises 40% more accurately.
It also comes with a temperature sensor and a continuous electrodermal activity sensor, which notify users to relax and breathe when they are stressed.
Pixel Watch 2 includes six months of free Fitbit Premium service, which offers various exercise courses, Sleep Profile and Readiness Score functionalities.
The underlined watch, which starts at $349, features automatic exercise detection for seven workouts, including running and outdoor cycling, Safety Check, Gmail and Google Calendar integration, along with the ability to send and receive calls and messages.
We believe all these features are expected to boost the adoption of the latest Pixel watch.
Alphabet’s solid efforts to strengthen its Pixel Watch series are expected to continue helping it bolster its presence in the booming smartwatch and wearable markets.
Per a Fortune Business Insights report, the global smartwatch market is anticipated to hit $29.31 billion in 2023 and reach $77.22 billion by 2032, witnessing a CAGR of 14.8% between 2023 and 2030.
Per a report from Straits Research, the wearable fitness tracker market is expected to hit $192 billion by 2030, seeing a CAGR of 17.5% between 2022 and 2030.
We believe the company’s growing prospects in these promising markets are expected to aid it in gaining investors’ optimism in the days ahead.
GOOGL has gained 53.3% in the year-to-date period, outperforming the industry’s growth of 47.8%.
Growth promises associated with Pixel Watches are expected to contribute well to the performance of Google Services segment in the days ahead.
In second-quarter 2023, revenues from the Google Services segment increased by 5.5% year-over-year to $66.3 billion, accounting for 88.8% of the total revenues.
Our model estimate for 2023 Google Services revenues is pegged at $267.05 billion, reflecting 5.3% growth from 2022.
Competitive Scenario
Although Alphabet is a late entrant in this market, its growing smartwatch efforts are likely to intensify competition for other incumbents like Apple (AAPL - Free Report) and Garmin (GRMN - Free Report) , which are leaving no stone unturned to expand footprint in the smartwatch market.
Apple, which is currently dominating the smartwatch market on the back of its expanding Watch family, is constantly making efforts to sustain its supremacy. The strong adoption of the Apple Watch on the back of useful and advanced features like Cycle Tracking, the Noise app and Activity Trends remains a major positive.
The company recently announced the availability of watchOS 10 to further strengthen the Apple Watch series.
More than two-thirds of the customers who purchased the Apple Watch during third-quarter fiscal 2023 were first-time customers.
Garmin’s expanding product portfolio for the Fitness and Outdoor business, which has been built with both internal development efforts and acquisitions, makes the company a potential player in the wearable space.
Recently, the company launched its new health and fitness smartwatch called vivoactive 5 and GPS smartwatches, namely the Venu 3 and Venu 3S.
These devices are comprised of robust healthcare features like sleep coach, which offers a sleep score and personalized coaching that keeps track of different sleep stages, naps, Pulse Ox1 and heart rate variability (HRV) status; morning report, which provides an overview of sleep, recovery and HRV status; nap detection, which tracks or logs naps automatically and Body Battery enhancements, which monitor energy levels throughout the day.
Zacks Rank & Another Stock to Consider
Currently, Alphabet carries a Zacks Rank #3 (Hold).
Image: Bigstock
Alphabet (GOOGL) to Boost Smartwatch Presence With Pixel Watch 2
Alphabet’s (GOOGL - Free Report) Google has unveiled the Pixel Watch 2 to bolster its smartwatch offerings as well as fitness tracking efforts.
The new Fitbit-powered Pixel watch features a circular design, a battery life of 24 hours with its always-on display active and an advanced quad-core processor.
It is equipped with a Fitbit-backed exercise tracking feature, an upgraded heart rate sensor and a tracking algorithm that captures the heart rate during strenuous exercises 40% more accurately.
It also comes with a temperature sensor and a continuous electrodermal activity sensor, which notify users to relax and breathe when they are stressed.
Pixel Watch 2 includes six months of free Fitbit Premium service, which offers various exercise courses, Sleep Profile and Readiness Score functionalities.
The underlined watch, which starts at $349, features automatic exercise detection for seven workouts, including running and outdoor cycling, Safety Check, Gmail and Google Calendar integration, along with the ability to send and receive calls and messages.
We believe all these features are expected to boost the adoption of the latest Pixel watch.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Growth Prospects
Alphabet’s solid efforts to strengthen its Pixel Watch series are expected to continue helping it bolster its presence in the booming smartwatch and wearable markets.
Per a Fortune Business Insights report, the global smartwatch market is anticipated to hit $29.31 billion in 2023 and reach $77.22 billion by 2032, witnessing a CAGR of 14.8% between 2023 and 2030.
Per a report from Straits Research, the wearable fitness tracker market is expected to hit $192 billion by 2030, seeing a CAGR of 17.5% between 2022 and 2030.
We believe the company’s growing prospects in these promising markets are expected to aid it in gaining investors’ optimism in the days ahead.
GOOGL has gained 53.3% in the year-to-date period, outperforming the industry’s growth of 47.8%.
Growth promises associated with Pixel Watches are expected to contribute well to the performance of Google Services segment in the days ahead.
In second-quarter 2023, revenues from the Google Services segment increased by 5.5% year-over-year to $66.3 billion, accounting for 88.8% of the total revenues.
Our model estimate for 2023 Google Services revenues is pegged at $267.05 billion, reflecting 5.3% growth from 2022.
Competitive Scenario
Although Alphabet is a late entrant in this market, its growing smartwatch efforts are likely to intensify competition for other incumbents like Apple (AAPL - Free Report) and Garmin (GRMN - Free Report) , which are leaving no stone unturned to expand footprint in the smartwatch market.
Apple, which is currently dominating the smartwatch market on the back of its expanding Watch family, is constantly making efforts to sustain its supremacy. The strong adoption of the Apple Watch on the back of useful and advanced features like Cycle Tracking, the Noise app and Activity Trends remains a major positive.
The company recently announced the availability of watchOS 10 to further strengthen the Apple Watch series.
More than two-thirds of the customers who purchased the Apple Watch during third-quarter fiscal 2023 were first-time customers.
Garmin’s expanding product portfolio for the Fitness and Outdoor business, which has been built with both internal development efforts and acquisitions, makes the company a potential player in the wearable space.
Recently, the company launched its new health and fitness smartwatch called vivoactive 5 and GPS smartwatches, namely the Venu 3 and Venu 3S.
These devices are comprised of robust healthcare features like sleep coach, which offers a sleep score and personalized coaching that keeps track of different sleep stages, naps, Pulse Ox1 and heart rate variability (HRV) status; morning report, which provides an overview of sleep, recovery and HRV status; nap detection, which tracks or logs naps automatically and Body Battery enhancements, which monitor energy levels throughout the day.
Zacks Rank & Another Stock to Consider
Currently, Alphabet carries a Zacks Rank #3 (Hold).
A better-ranked stock in the broader technology sector is Asure Software (ASUR - Free Report) which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Asure Software shares have gained 29% in the year-to-date period. ASUR’s long-term earnings growth rate is currently projected at 27%.