With the leaks of the Pixel 3 and Pixel 3 XL coming thick and fast, now we hear Google might be making its own smart speaker, the Home Hub, if a leak from yesterday is to be believed. Meanwhile Google’s shares have been mostly directionless for the past couple of weeks in the middle of all the rumours.
GOOGL.US has failed to break back above $1,200 this month so far, having been hit by news of tariffs and to some extent by Congressional investigations into big tech. There’s been a slight decline this week from Monday’s opening around $1,180, with GOOGL closing last night in New York at $1,166.61.
You could say the rumoured Home Hub looks a bit like somebody’s stuck a nice-looking tablet onto a smaller Home Max. Aesthetics aside, though, the design appears to be pretty functional: a mute switch for the mic on the back, a decent-sized screen and the same sort of functionalities you’d expect from a smart speaker.
Rumour also has it as reported by MySmartPrice that the Home Hub might only run Google Assistant without any other OS. Pricing, like other details, is pretty vague, but if $149 (about £115) is right that’d be in the middle of the current Home and the Home Max. Crucially, it’d be cheaper than Lenovo’s rival product.
Stats are thin on the ground, but tech enthusiasts seem to be agreed that these rumours if true would be a great direction for Google to take, a deeper movement into the lucrative home device market. This’d mean Google would make a greater challenge to Amazon among others in this area.
The announcement if any of the Home Hub would probably come on 9 October alongside the Pixel 3.
We’ve already had a look at the leaks of the Pixel 3 and Pixel 3 XL and the buzz online about these: on the whole it appears that Google’s upcoming (and rumoured upcoming) hardware are a focus of interest for techies as well as traders of the company’s stock.
Considering the outlook more generally for Alphabet, though, various analysts have noted that the stock’s underbought over the past month and more. This might be true given the efforts being made by the company to do everything it can to deal with recent tightening of regulations and monitoring of big tech.
Tariffs are going to continue to be a negative factor for GOOGL especially as the company considers expansion in China, but the stock’s movements are to be watched closely as Alphabet’s earnings report approaches next month.
We reckon Cramer’s right in his summary of Google as being a stock to watch closely. While stopping short of looking for new highs in the very near future, we’re calling expansion into hardware combined with relatively low impact from recent crises in privacy good signs for Alphabet’s fundamentals looking further ahead.
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