Alphabet’s GOOGL division Google recently joined forces with The National Asian/Pacific Islander American Chamber of Commerce and Entrepreneurship (National ACE) and the Asian American Federation.
Per the terms of the partnership, Google will provide security devices and resources in the form of Nest Cam Kits to the Asian American and Pacific Islander (AAPI)-owned small businesses.
The AAPISTRONG Nest Cam Kit contains three Nest Cam (indoor, wired), a 12-month subscription to Nest Aware, and professional installation.
On the back of this collaboration, Google aims to help AAPI business owners protect their stores during business and closed hours.
Google and its partners already ran pilot programs with more than 20 businesses in New York and received positive feedback.
Thus, the recent collaboration is expected to help Google boost the adoption rate of Nest Cam Kits among AAPI business owners.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Expanding Google Nest Offerings: Key Catalyst
Google’s strengthening efforts toward expanding its Nest offerings consisting of smart home products like smart speakers, smart displays, thermostats, smoke detectors, smart doorbells, cameras and smart locks, are expected to continue driving its customer momentum in the smart home space.
The Alphabet unit is gearing up for launching its next-generation Nest Doorbell. The Doorbell will provide all-day video history recording to users with Nest Aware subscription.
Further, Google’s Nest Huband other Google Assistant smart displays, which recently started featuring lyrics on the Spotify app while playing songs on smart devices, are likely to continue gaining momentum among the users.
With the growing initiatives, Google remains well-poised to capitalize on the growth prospects in the booming smart-home market. Per a Fortune Business Insights report, the market is expected to hit $380.5 billion in 2028, seeing a CAGR of 21.1% from 2022 to 2028.
Moreover, Google’s strengthening presence in this promising market will further help its parent Alphabet win investors’ confidence in the days ahead.
Shares of Alphabet have been down 28% in the year-to-date period compared with the Computer and Technology sector’s decline of 26.2%.
GOOGL’s recent collaboration is expected to help it expand its presence in the booming smart-home security market.
The market is witnessing significant growth in recent times owing to increasing demand for safety and security systems, driven by the rising crime rate across the globe.
Per a Brand Essence Research report, the underlined market is expected to hit $5.86 billion by 2028, witnessing a CAGR of 20.4% between 2022 and 2028.
Given this upbeat scenario, not only Google but other companies like Amazon AMZN and Vivint Smart Home VVNT are also making strong efforts to capitalize on the above-mentioned prospects.
Shares of Amazon have been down 23.9% in the year-to-date period. AMZN’s launch of the Blink Floodlight Camera is a positive. The camera features a battery-powered LED mount to deliver an enhanced home security experience. In addition, AMZN unveiled the Blink Video Doorbell, providing a long-lasting battery life, wired or wire-free install, HD day and night video, two-way audio, and alerts to users’ smartphones.
In May 2022, Vivint released a suite of smart-home products, including an all-new Doorbell Camera Pro, Outdoor Camera Pro, Spotlight Pro and Indoor Camera Pro. With these new products, VVNT aims to offer homeowners safe and smart-home solutions. Shares of VVNT have been down 31.3% in the same time frame.
Nevertheless, Alphabet’s strategic partnerships and growing efforts toward expanding its Nest security product offerings are expected to help it gain a competitive edge over its peers.
Zacks Rank & Stock to Consider
Currently, Google’s parent Alphabet carries a Zacks Rank #3 (Hold). Investors interested in the broader Zacks Computer & Technology sector can consider a better-ranked stock like Monolithic Power Systems MPWR, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Monolithic Power Systems has lost 14.4% in the year-to-date period. The long-term earnings growth rate for MPWR is currently projected at 25%.
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