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Alphabet (GOOGL) Boosts Pixel Watch With Watch 2 Features

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Alphabet’s (GOOGL - Free Report) Google is making advancements to add features to its original Pixel Watch.

A month ago, it was announced that this particular smartwatch would be upgraded with some of the features of the Pixel Watch 2. It has now started featuring DND and Bedtime Mode sync.

Users can avail of these features by opening the Pixel Watch companion app.

Alphabet’s solid efforts to strengthen its Pixel Watch series are expected to continue helping it bolster its presence in the booming smartwatch market.

Per a Fortune Business Insights report, the global smartwatch market is anticipated to reach $77.22 billion by 2032, witnessing a CAGR of 14.8% between 2023 and 2030.

The company’s growing prospects in this promising market are expected to aid it in gaining investors’ optimism in the days ahead.

Growth promises associated with Pixel Watches are expected to contribute well to the performance of Google Services segment which has been the key growth driver of the company.

Alphabet’s shares have gained 56.2% in the past year, outperforming the Zacks Computer & Technology sector’s growth of 53.1%.

Growing Google Services segment is expected to continue driving its overall performance.

The Zacks Consensus Estimate for 2024 total revenues is pegged at $283.39 billion, indicating year-over-year growth of 11.3%.

The consensus mark for 2024 earnings is pinned at $6.74 per share, indicating year-over-year growth of 15.6%. The estimate has been revised upward by 0.7% in the past 30 days.

Competitive Scenario

Although Alphabet is a late entrant in this market, its growing smartwatch efforts are likely to intensify competition for other incumbents that are leaving no stone unturned to expand footprint in the smartwatch market, like Apple (AAPL - Free Report) and Garmin (GRMN - Free Report) .

Apple, 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 fourth-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.

The launch of its new health and fitness smartwatch called vivoactive 5 and GPS smartwatches, namely the Venu 3 and Venu 3S, remains noteworthy.

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 #2 (Buy).

Another top-ranked stock in the broader technology sector is Camtek (CAMT - Free Report) , carrying a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Camtek shares have returned 220.4% over the past year. The long-term earnings growth rate for CAMT is pegged at 12.26%.


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