Google buys Fossil – The SHAREHOLDER on Google

The integration of the $ 40 million purchase should be done fairly quickly, as part of the development department (about 200 employees) has to move from Fossil to Google. Developers already know the Google software. Because the operating system, which until now uses Fossil Smartwatches, is Google's Wear OS, which is based on the Android mobile operating system.

But unlike smartphones, Google is late on Apple smartwatches. The slightly older figures, from IDC to 2017, make it clear: The Apple Watch dominates the market.

The growth potential in the market, however, IDC badysts rank as promising. This year, 74 million smart watches are expected to be sold. Enough space for Google's ambitions.

Synergies through smart products

Google had already announced in 2017 that it would continue to focus on producing its own products such as smartphones, network speakers or tablets in the coming years. The company focuses not only on revenue, but also on synergies between Google devices and services. The ecosystem will be strengthened and persistent negative trends such as rising traffic acquisition costs (TACs) could be mitigated. The so-called TACs require device manufacturers to preinstall Google services or redirect them to Google default search in their browser. The TAC now accounts for about 24% of advertising revenue and significantly reduces profitability.

The image of the card illuminates

The additional market potential could have a positive long-term impact on the stock, provided that Google's hardware efforts around smartpeaker, smartwatch and smartphone are successful.

In the medium term, the share again shows a positive trend. The $ 900 mark has bottomed out, and the still young uptrend has now exceeded the 90-day mark and the dominant downtrend. Clear purchase signals: who wants to increase his stock, can buy at this point.

AppleWatch source infographic: Statista, https://www.statista.com/infografik/15047/geschaellt-weltweiter-smartwatch-absatz/