From investors.com
Facebook Plans Video Chat Device That Will Compete With Amazon Echo Show
| Stock News & Stock Market Analysis - IBD
Investor's Business Daily
Facebook (FB) is planning on going head-to-head with Amazon (AMZN) in
the market for video chat devices in the home with a new product called
Portal.
X A report from news site Cheddar said the device represents Facebook's
first serious foray into selling consumer hardware, according to people
familiar with the matter.
Facebook is currently planning to price Portal at $499 but could decide
to lower the price to further spur consumer adoption, the Cheddar report
said. It said that Facebook Chief Executive Mark Zuckerberg told
employees he wants the device to change user behavior and encourage
phone-like usage among owners. Facebook is expected to introduce Portal
at its developers conference in May and ship sometime in the second half
of the year.
The Portal device is expected to compete most directly with the Amazon
Echo Show, introduced in May as an addition to Amazon's line of
artificially intelligent smart speakers voiced by Alexa. The devices
connect to the internet and provide a wide array of services, in one of
the hottest categories in consumer electronics.
The Amazon Echo Show is a smart speaker with an integrated 7-inch
touchscreen that people can use for video-based calls, priced at $229.99.
Amazon is the market leader in smart speakers for the home, followed by
Alphabet (GOOGL) with its Google Home device. Other competitors include
the HomePod from Apple (AAPL). Amazon and Alphabet have jockeyed for the
spotlight at media events during the annual CES consumer technology
trade show currently underway in Las Vegas.
IBD'S TAKE: New products or services are part of the N in IBD's CAN SLIM
investing system. Strong growth in earnings is the No. 1 factor to look
for in a stock, but new products or services often generate stellar
profitability.
So-called virtual digital assistants like Google Home and Amazon Echo
are expected to be widely dispersed throughout homes across the U.S. and
become a multibillion-dollar market. The devices could evolve into the
next major disruption in computing and put the smart home on a fast track.
Facebook shares were down 0.7%, near 186.70 during morning trading in
the stock market today. Shares of Amazon were down 0.6%, near 1,245.
Alphabet shares were down 0.5%, near 1,106. All three stock are near
record highs.
--
David Goldfield, Assistive Technology Specialist WWW.David-Goldfield.Com
