Alphabet (GOOGL) Boosts Google Maps With Recent Capability
Alphabet’s GOOGL division Google is consistently working toward adding innovative features to Google Maps.
Reportedly, Google is gearing up to add a capability to Google Maps, which will allow users to specify the engine type of the vehicle they are driving.
By providing the specifications of the engine, Google Maps users can view the most energy-efficient routes which will save their fuel.
The latest useful feature is expected to deliver enhanced mapping experience which in turn is expected to boost the adoption rate of Google Maps in the days ahead.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Growing Google Maps Initiatives
Apart from the recent capability, Google added a widget to Google Maps, which updates information on nearby traffic at the user’s current location.
Additionally, Google introduced a feature to Searches and Maps, which shows “Identifies as LGBTQ+ owned” on the business profiles of sellers belonging to the LGBTQ+ community.
Google is making efforts to show estimated toll prices for planned routes on Google Maps to users of both Android and iOS.
All these endeavors will continue to help Google drive momentum among its users. This, in turn, is likely to get reflected in the performance of the Google Services segment, which will benefit Alphabet’s overall financial performance.
Google Services generated $61.5 billion revenues (90.4% of total revenues) in first-quarter 2022, up 20.1% from the prior-year quarter’s level.
Moreover, strengthening financial performance will aid GOOGL in winning investors’ confidence in the near term. Shares of GOOGL have been down 22.8% in the year-to-date period, outperforming the Computer and Technology sector’s decline of 28.8%.
Competitive Threat
However, Alphabet faces intense competitive pressure from another technology giant, Apple AAPL, which is witnessing solid momentum among customers on the back of its location-showing services.
Apple, which has lost 15.4% in the year-to-date period, offers its web mapping service named Apple Maps. It provides directions and an estimated arrival time for driving, walking, cycling and public transportation navigation.
Recently, Apple introduced a capability to its Apple Maps app for iOS 16 users, which lets them add multi-stop routing to the app.
Thus, Apple’s growing efforts to enrich its web mapping application threaten Alphabet’s market position.
Zacks Rank & Stocks to Consider
Currently, Alphabet carries a Zacks Rank #4 (Sell).
Investors interested in the broader Zacks Computer & Technology sector can consider some better-ranked stocks like Aspen Technology AZPN and Agilent Technologies A, both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Aspen technology has returned 15.7% in the year-to-date period. The long-term earnings growth rate for AZPN is currently projected at 18.4%.
Agilent Technologies has lost 25.5% in the year-to-date period. The long-term earnings growth rate for A is currently projected at 10%.
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