Alphabet (GOOGL) Joins Pivot to Aid Adoption of Nest Devices
Alphabet’s GOOGL subsidiary Google is consistently forming strategic partnerships to provide better services to customers.
Reportedly, Google partnered with Pivot Energy, the leading national developer of onsite solar projects and small utility solar projects.
Google’s collaboration with Pivot Energy is aimed at providing community solar programs to users having a Home or Nest device and Google account.
Users have to sign up for a paid subscription for the community solar project for building a local solar farm. They will be able to avail solar credits each month on electricity bill once the solar panels are live.
Currently, the solar subscription is available for users living in Colorado and Illinois.
Alphabet Inc. Price and Consensus
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Move to Benefit
With the recent collaboration, Google aims to help subscribers staying in these states save at least $60 on their electricity bill in the first year. Also, the first 2,000 people subscribing to the solar program will get $125 Google Store gift card.
This is expected to aid Google gain momentum among customers staying in Colorado and Illinois and thereby boost the adoption rate of Nest devices and Google account.
This, in turn, is likely to drive the performance of Google Services segment, which contributes the most to Google’s parent, Alphabet’s top line.
Revenues from the Google services business increased 2.5% year over year to $61.4 billion, accounting for 88.8% of the total third-quarter revenues.
Strength in Google Nest Offerings
The recent partnership with Pivot Energy bodes well for Google’s growing efforts toward increasing demand of Nest devices.
Alphabet joined forces with The National Asian/Pacific Islander American Chamber of Commerce and Entrepreneurship and the Asian American Federation provide security devices and resources in the form of Nest Cam Kits to the Asian American and Pacific Islander-owned small businesses.
Further, Google is continuously expanding Nest portfolio with smart home products like smart speakers, smart displays, thermostats, smoke detectors, smart doorbells, cameras and smart locks.
Alphabet recently launched the next-generation Nest Doorbell. The Doorbell provides all-day video history recording to users with Nest Aware subscription.
Apart from these, Alphabet switched the operating system of its Nest Hub smart displays and Nest audio smart speaker to the Fuchsia operating system.
Strengthening Nest efforts will continue to help Alphabet penetrate the booming smart home market, which is expected to witness a CAGR of 27.04% between 2022 and 2030, per a report by Grand View Research.
However, macroeconomic headwinds, inflationary pressure, mounting expenses and growing litigation issues remain major headwinds for the company.
Shares of Alphabet have lost 34% in the past year, comparing with the Computer and Technology sector’s decline of 28.6%.
Zacks Rank & Stocks to Consider
Currently, Alphabet carries a Zacks Rank #4 (Sell).
Some top-ranked stocks in the broader Zacks Computer & Technology sector are Arista Networks ANET, Agilent Technologies A and Asure Software ASUR. While Arista Networks sports a Zacks Rank #1 (Strong Buy), Agilent Technologies and Asure Software carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks has lost 11.3% in the past year. ANET’s long-term earnings growth rate for ANET is currently projected at 17.5%.
Agilent Technelogies has gained 8.5% in the past year. A’s long-term earnings growth rate is currently projected at 10%.
Asure Software has returned 32.5% in the past year. The long-term earnings growth rate for ASUR is currently projected at 23%.
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