Alphabet GOOGL is leaving no stone unturned to bolster its presence in the automobile sector on the back of its advanced solutions.
The latest roll out of Android Auto’s version 11.0 is a testament to the same.
The new version is likely to be very useful for Samsung smartphone users. It enables users to change the status and app icons in order to match the looks of the same apps that appear on a Samsung Galaxy device.
With this, the company is likely to witness a strong uptake of Android Auto by Samsung users.
Alphabet Inc. Price and Consensus
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Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Growing Efforts
The latest move bodes well for growing efforts to strengthen its Android Auto application in a bid to fortify its auto solutions portfolio.
Apart from that, the company recently added features to Android Auto.
Reportedly, one of the new features helps customers identify a car as an electric vehicle (EV). The feature can be accessed from a new section called EV Settings in the app. The specification also lets users toggle on EV features within Google Maps in Android Auto.
Another feature helps users identify and select the charging connector their vehicles are using. Currently, some of the connectors that are listed on the app are J1772, CCS (Combo 1 and 2), Type 2 and CHAdeMO.
The company included strings associated with battery meters, which may show charge levels directly through Android Auto.
These features are likely to aid the company in gaining traction among EV car makers, which, in turn, will help it in capitalizing on the growth prospects present in the booming EV market.
Strengthening the Android Auto app is expected to contribute well to the performance of the Google Services segment, which contributed the most to the total revenues.
In the third quarter of 2023, revenues from the Google Services business increased 10.8% year over year to $67.99 billion, accounting for 88.6% of the total revenues.
For 2023, our model projects Google Services revenues at $269.03 billion, reflecting growth of 6.1% year over year. The same for 2024 is pegged at $298.5 billion, indicating year-over-year growth of 10.9%.
Growing Google Services business will continue to drive the company’s total revenues. This, in turn, will continue to instill investor optimism in the stock.
For 2023, our model projects total revenues at $303.04 billion, reflecting growth of 7.1% year over year. The same for 2024 is pinned at $336.23 billion, indicating year-over-year growth of 11%.
GOOGL has gained 60.4% on a year-to-date basis compared with the industry’s rise of 57.4%.
Zacks Rank & Other Stocks to Consider
Currently, Alphabet carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector are NVIDIA NVDA, Badger Meter BMI and Arista Networks ANET. These three companies carry a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of NVIDIA have rallied 234.3% in the year-to-date period. NVDA’s long-term earnings growth rate is projected at 13.5%.
Shares of Badger Meter have gained 31.1% in the year-to-date period. BMI’s long-term earnings growth rate is projected at 20.39%.
Shares of Arista Networks have surged 70.2% in the year-to-date period. The long-term earnings growth rate for ANET is projected at 19.77%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
