Alphabet (GOOGL) to Add New Features to Google Messages


Alphabet’s GOOGL Google is set to bolster its Messages app on Android on the back of new feature updates. It is introducing a new in-app contacts page for Google Messages, replacing the previous method of tapping the photo + name at the top of a conversation.

Notably, the profile picture, name and number are centered at the top, followed by circular shortcuts for phone calls, opening Google Contacts, and searching.

Google is also adding Material 3 carousel to its Messages app, allowing items to expand and shrink while scrolling, with a display of videos, links and more.

Additionally, the new feature boasts shortcuts to notifications, spam blocking, end-to-end encryption status verification and group conversations, with a “people” section for group discussions.

Alphabet is expected to gain solid traction across Android users on the back of its latest move.

Alphabet Inc. Price and Consensus

Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote

More on Google Messages

The latest move is in sync with Alphabet’s increasing focus on updating its Google Messages app with enhanced features.

Notably, Google integrated generative AI capabilities into its Google Messages app with Magic Compose.

Magic Compose, a Google AI, reads 20 conversations and generates responses based on user needs. Users can prompt it to write a professional message, stating their absence from work.

Further, Google added a “plus” shortcut to its Google Messages app, offering Android users a redesign, including a left-facing compose field and an emoji shortcut, along with Magic Compose, a new Gallery icon and a plus menu on the right.

Additionally, Google introduced Photomoji for reactions and stickers on Google Messages, with the app displaying a circular badge over the compose button. Users can add new emojis by long-pressing on SMS or RCS chat.

Also, Google unveiled a camera shortcut to the app bar on the new homescreen of Google Messages app on Android.

Conclusion

We believe that all the above-mentioned endeavors will likely strengthen Alphabet’s Android offerings, which, in turn, will boost its Google Services segment that accounts for the majority of GOOGL’s 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 expects fourth-quarter 2023 Google Services revenues to be $72.79 billion, indicating growth of 7.3% from the 2022 level.

Strength in the underlined segment will likely aid its overall financial performance in the upcoming period. This, in turn, will instill investors’ 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’s shares have rallied 50.3% on a year-to-date basis compared with the industry’s growth of 51.3%.

Zacks Rank & Stocks to Consider

Currently, Alphabet carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are Badger Meter BMI, Arista Networks ANET and CrowdStrike CRWD. While Badger Meter sports a Zacks Rank #1 (Strong Buy) at present, Arista Networks and CrowdStrike carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Badger Meter have risen 42.1% in the year-to-date period. BMI’s long-term earnings growth rate is 20.39%.

Shares of Arista Networks have rallied 89.2% in the year-to-date period. ANET’s long-term earnings growth rate is 19.77%.

Shares of CrowdStrike have risen 139.4% year to date. CRWD’s long-term earnings growth rate is 36.07%.

The New Gold Rush: How Lithium Batteries Will Make Millionaires

As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%.

Download the brand-new FREE report revealing 5 EV battery stocks set to soar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Badger Meter, Inc. (BMI) : Free Stock Analysis Report

Alphabet Inc. (GOOGL) : Free Stock Analysis Report

Arista Networks, Inc. (ANET) : Free Stock Analysis Report

CrowdStrike (CRWD) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



Original: GOOGL Feed: Alphabet (GOOGL) to Add New Features to Google Messages