Alphabet (GOOGL) Enhances Google Drive Display for Tablet Users
Alphabet’s GOOGL division Google continues to make strong efforts in a bid to bolster its Workspace offerings, which comprise Gmail, Meet, Drive, Docs, Sheets, Slides and Calendar.
With robust Google Workspace, the company is witnessing solid momentum among several businesses as well as individual users.
To sustain the solid momentum, the company recently started rolling out a large-screen redesign of the Google Drive app, especially for tablet displays.
Notably, the new look for Google Drive on Android tablets features a side-mounted navigation rail in place of the bottom navigation bar. This is to make it easier for users to see file details for a selected file.
Also, the company has included a "plus" floating action button (FAB) in the navigation rail along with the usual Home, Starred, Shared and Files tabs in it.
A new button has also been added to allow users to expand and collapse the drawer easily. Further, the top search bar as well as the tabs for the “Suggested” files and “Notifications” are now taking up less space.
We believe that the latest move will bolster the adoption rate of Google Workspace.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Growing Workspace Efforts
Apart from the latest move, the addition of Material 3 features to Google Docs, Sheets, Slides and Meet in a bid to provide an enhanced experience to Workspace users, is noteworthy.
The new toggle design switch is one of the Material 3 features. Users of Google Docs, Sheets and Slides leverage the switch in the editor’s overflow menu for print layout, suggested changes, offline availability and star.
Additionally, Google Meet’s desktop experience in Chrome has been updated with a picture-in-picture feature and multi-pinning skills to help presenters and attendees stay engaged in meetings.
All these endeavors are expected to continuously boost the demand for Google Workspace application.
Google Cloud in Focus
Alphabet’s cloud offerings include Google Cloud Platform and Google Workspace, both of which have been continuously gaining momentum in the booming cloud computing market.
We note that strengthening Google Workspace is expected to contribute positively to the performance of Google Cloud segment, which has become an integral part of Alphabet.
In fourth-quarter 2022, Google Cloud revenues rose 32% year over year to $7.3 billion, accounting for 9.6% of the quarter’s total revenues.
We believe strengthening performance of Google Cloud on the back of growing investments, robust offerings and the addition of innovative features are likely to contribute well to Alphabet’s overall performance in the near term. This in turn is expected to aid Alphabet in winning investors’ confidence in the near term.
The Zacks Consensus Estimate for the company’s total revenue is pegged at $56.95 billion, indicating growth of 2% from the year-ago reported figure.
Coming to the price performance, GOOGL has lost 27.7% compared with the industry’s decline of 26%.
Zacks Rank & Stocks to Consider
Currently, Alphabet carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Arista Networks ANET, Salesforce CRM and Analog Devices ADI. While Arista Networks and Salesforce sport a Zacks Rank #1 (Strong Buy), Analog Devices carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks shares have gained 20.5% in the past year. The long-term earnings growth rate for ANET is currently projected at 14.17%.
Salesforce shares have lost 11.1% in the past year. CRM’s long-term earnings growth rate is currently projected at 16.75%.
Analog Devices shares have gained 10.5% in the past year. The long-term earnings growth rate for ADI is currently projected at 12.25%.
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