Alphabet (GOOGL) Extends Google Chat Redesign to Android
Alphabet’s GOOGL Google is enhancing its Google Chat app on the back of new features and redesigns.
Notably, the latest redesign features Home, Direct messages, Spaces and Mentions in a pill-shaped container, replacing the bottom bar and "New" floating action button (FAB).
Further, this home-screen redesign is gradually advancing to Android following the widespread release of the "New" FAB icon.
Google is expected to gain solid traction across Android users on the back of its latest move. This, in turn, will boost its Google Services segment, which accounts for the majority of total revenues.
In third-quarter 2023, Google Services’ revenues increased 10.8% year over year to $67.99 billion, accounting for 88.6% of total revenues.
Our model projects fourth-quarter 2023 Google Services revenues at $72.79 billion, indicating growth of 7.3% from 2022.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
More on Google Chat
Apart from the latest move, Google updated the status bar icon with version 2023.11.26.x, reducing detail and using thicker outlines compared to other Workspace apps.
Further, Google unveiled a significant redesign for Google Chat on Android and iOS, featuring a new bottom navigation bar with four tabs corresponding to the upcoming web version. The new tabs include Home, Direct messages, Spaces and Mentions, providing a unified view of these features and allowing easy access to unread messages.
Additionally, Google Chat redesigned its navigation panel, featuring shortcuts and "Home" for quick activity tracking across all conversations, filtering feeds by Unread, Threads and Recency.
Also, Google partnered with Mio to enable seamless communication across multiple channels, enhancing customer productivity and facilitating cross-company collaboration.
To Conclude
We believe Google’s growing endeavors to bolster its Chat app will likely strengthen Google Workspace offerings, which, in turn, will boost its Google Cloud segment.
Notably, Google Cloud, which has become an integral part of Alphabet, reported revenues of $8.41 billion in the third quarter of 2023. The figure accounted for 10.9% of the quarter’s total revenues and exhibited year-over-year growth of 22.5%.
Our model projects fourth-quarter 2023 Google Cloud revenues to be $8.65 billion, exhibiting year-over-year growth of 18.3%.
Strength in the underlined segment will likely aid its overall financial performance in the upcoming period. This, in turn, will instill investor optimism in the stock.
Our model estimate for fourth-quarter 2023 total revenues is pegged at $81.95 billion, indicating year-over-year growth of 7.8%.
Alphabet has gained 59.2% on a year-to-date basis compared with the industry’s rise of 57.4%.
Zacks Rank & Stocks to Consider
Currently, Alphabet carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Flex FLEX, Badger Meter BMI, and Arista Networks ANET. While Flex sports a Zacks Rank #1 (Strong Buy) at present, Badger Meter and Arista Networks carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Flex have gained 40.1% in the year-to-date period. FLEX’s long-term earnings growth rate is currently projected at 12.39%.
Shares of Badger Meter have gained 39.7% in the year-to-date period. BMI’s long-term earnings growth rate is currently projected at 20.39%.
Shares of Arista Networks have surged 93.9% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 19.77%.
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