Google Inc (NASDAQ:GOOGL)’s Android has been a huge hit and most phones in the world currently run on Android, however it doesn’t stop there. The #1 brand in the world is looking to increase the impact of Android on our lives.
CNBC’s Josh Lipton discussed the products unveiled in the developers conference. He said that thousands of developers attended the I/O 2014 and almost 1 million people watched the event online. There were protestors too disturbing the event and they had to be escorted out. The event continued and the theme was simple, Android all the way. Google Inc (NASDAQ:GOOGL) wants Android to occupy larger space in your life, from your TV to your car.
Google Inc (NASDAQ:GOOGL) introduced a new in car technology called “Android Auto” which sports voice activated commands for music and messaging so you wouldn’t need to look at your phone while driving. Google Inc (NASDAQ:GOOGL) has also introduced Android TV which would get integrated with Set top boxes and would be out later this year according to Lipton.
Aaron Kessler of Raymond James Financial, Inc. (NYSE:RJF) was on CNBC earlier today and he rated the stock to outperform. He began with mentioning the way all the major companies are making ways to enter the living room of a consumer. He mentioned about the Fire announcement by Amazon.com, Inc. (NASDAQ:AMZN) and the Apple TV that was announced by Apple Inc. (NASDAQ:AAPL) earlier. Basically all these products try to become part of a consumer’s life.
Kessler feels that Google Inc (NASDAQ:GOOGL) might give up the hardware for free initially and then earn $ from the advertising revenue. It has been their model for operating mostly. Google Inc (NASDAQ:GOOGL) has a low cost model. He thinks that the company wants to tie the eco system together.
However the more Google Inc (NASDAQ:GOOGL) gets into a consumer’s life, the more it gets to post targeted ads. Google Inc (NASDAQ:GOOGL) knows more information about you with more products and it get more revenue with targeted ads. Here is what Kessler said about targeted ads:
“It really is about better targeting, better targeting across devices and Google’s in, we think, the best position as anybody to do that.”
Kessler has an ‘Outperform’ rating for Google Inc (NASDAQ:GOOGL)’s stock cutting the target price from $660 to $645 to which he replied there is no change in stance from him and he feels that Google Inc (NASDAQ:GOOGL) is making the apt move in the advertising and the search industry. However, he feels that the new products launched have not proved anything yet on the markets so it would be a little early to judge them.
Kessler feels that Google Inc (NASDAQ:GOOGL) is everywhere and it has most part of the search market in the US and emerging as a leader in most of the countries across the globe. With all these new products to the catalogue can actually drive an additional growth on the market.