Alphabet’s GOOGL division Google announced that its online video game service — Stadia — will be available for free. This is yet another step by Google to help people stay calm during the coronavirus pandemic.
The company stated that Stadia can be accessed at no cost for two months. The service is expected to be available to 14 countries soon. The users who sign up will be able to play nine games, including a Destiny collection, and have the option to buy more titles if they wish to.
The latest move is in sync with its strategy of expansion in the gaming market. We believe the move will also bolster the adoption rate of Stadia going forward, in turn enhancing the company’s top-line growth.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Google’s Aggressive Stance
The search giant has been aggressively eyeing the video game market for quite some time now.
This cloud-based video game streaming service, Stadia, was publicly released in November 2019. The company has not revealed the number of Stadia users since its launch. Encouragingly, it has been firing on all cylinders to expand presence in the cloud gaming space on the back of its game streaming platform — Stadia.
Last month, the company announced that it is opening a second development studio for Stadia. Its first studio is located in Montreal.
The studio focuses on delivering exclusive games, so that it can make its platform more attractive.
Increasing investments by Google to bolster presence in the cloud gaming market, which holds immense potential, are likely to drive growth in the near term.
Cloud Gaming Space Holds Promise
The search giant has been focusing on the cloud gaming market for quite some time now.
Per a report from MarketsandMarkets, the global cloud gaming market is expected to reach $3.1 billion at a CAGR of 59% between 2019 and 2024.
According to a report from Global Market Insights, the market is anticipated to see a CAGR of 30% over the 2019-2025 period.
According to Valuates Report, this particular market is projected to reach $740 million at a CAGR of 41.9% between 2019 and 2025.
Google is developing 450 games currently, which will be released on Stadia this year and beyond. We believe that the company is well poised to rapidly penetrate the growing video streaming market on the back of Stadia-expansion initiatives.
Zacks Rank & Stocks to Consider
Currently, Alphabet carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Stamps.comInc. STMP, eBay Inc. EBAY and Fiverr International Lt. FVRR. While Stamps.com sports a Zacks Rank #1 (Strong Buy), eBay and Fiverr International carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth for Stamps.com, eBay and Fiverr International is currently projected at 15%, 11.6% and 44.2%, respectively.
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