alphabet GOOGL is leaving no stone unturned to increase its presence in the automotive space on the back of advances in Android Auto.
Recently, Google introduced a new Android Auto feature namely ‘Use your phone’s wallpaper with Android Auto’.
Android Auto now allows users to sync their phone’s wallpaper. The wallpaper appears on your car’s display behind the app drawer and can be turned off in Android Auto settings.
Alphabet is expected to gain significant popularity among car owners using the Android platform following this move.
This latest move is in sync with Alphabet’s increasing efforts to enhance its Android Auto application to strengthen its automotive solutions portfolio.
The enhancements to Android Auto are expected to strengthen Android services, one of Alphabet’s key growth drivers. GOOGL has gained 60.2% year-to-date, compared to the Zacks Computer & Technology sector’s growth rate of 53%.
Additionally, the growing momentum of Android is expected to continue to drive growth in Google Services, with revenue of $67.99 billion (88.6% of total revenue) in Q3 2023. This number increased by 10.8% year-on-year.
The Zacks Consensus Estimate for Google Services revenue for the fourth quarter of 2023 is pegged at $74.77 billion, representing growth of 10.2% from 2022 levels.
Alphabet Inc. Price and Consensus
Alphabet Inc. Price Consensus Chart | Alphabet Inc. Quote
Focus on Android Auto
Apart from the latest move, the company recently released Android Auto 11.0 for Samsung smartphones, which allows users to customize status and app icons, indicating strong adoption of this feature by Samsung users.
Google also introduced the Google Maps feature for Android Auto, allowing users to save their parking location when they arrive at a specific destination. This feature will appear on the arrival screen and will be triggered by tapping the ‘Save Parking Location’ button and will provide a reminder the next day.
The company announced a new feature in Android Auto that allows customers to identify their car as an electric vehicle (EV) and turn on EV functionality within Google Maps.
Additionally, Alphabet announced that it is working on enhancements to the Android Auto system with the ability for “the Assistant to summarize busy conversations.” This AI-powered feature lets Google Assistant summarize busy conversations, reducing interruptions caused by reading too many messages.
All these efforts are expected to solidify Google’s presence in the global automotive infotainment market.
According to a report by Fortune Business Insights, the global automotive infotainment market is expected to reach $49.86 billion by 2030, showing a CAGR of 6.5% from 2023 to 2030. Masu.
Growth prospects in this promising market will help Alphabet win investor trust going forward.
Zacks Rank and other stocks to consider
Alphabet currently has a Zacks Rank of #2 (Buy).
Other top stocks in the broader technology sector include: camtech Camuto KT With KT everbridge EVBG currently carries a Zacks Rank #1 (Strong Buy).You can view See the complete list of today’s Zacks #1 Rank stocks here.
Camtek stock has returned 217.9% since the beginning of the year. CAMT’s long-term earnings growth rate is pegged at 12.26%.
KT stock has returned 1.4% since the beginning of the year. KT’s long-term earnings growth rate is currently expected to be 6.75%.
Everbridge stock has fallen 16.6% since the beginning of the year. EVBG’s long-term earnings growth rate is currently expected to be 47.04%.
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