Google Inc (GOOG), Seagate Technology PLC (STX): Should You Buy These Tech Stocks?

First, the product is actually good. It will allow users to open maps, read news, and access useful information. These new glasses are one of Google Inc (NASDAQ:GOOG)’s highly anticipated products. Second, by the time it is released, the cost of Google Glass will fall in the same range of a smartphone or tablet. It is particularly important for the product to hit this price point, so it is seen as a mass-consumer good the same way that the iPhone and iPad are seen.

Third, Google Inc (NASDAQ:GOOG) has already executed in tackling different markets. I would have said a few years back that it had no business being in mobile. As a search company and, perhaps, content aggregator, mobile was seemingly too “detached” from the core business. However, the company not only entered the market, but it also displaced the supposed invincible leader, Apple. This is something that is not given enough credit. And it is now capitalizing on this success through increasing Nexus sales and a planned “X Phone,” which it is partnering with Motorola to develop. The product is rumored to have increased gesture and image recognition–something that Google Glass could also benefit from. Fourth, Google Inc (NASDAQ:GOOG) could then integrate this product into Google Glass.

I know “Google Glass” my seem far-fetched, but if Google could popularize the search engine and enter a tightly controlled market, I believe it can succeed in consumer electronics, too.

Conclusion

Given how unpredictable the tech sector can be, tech investors would be well-advised to diversify. Google and Seagate are attempting to break into new markets, but, in my view, only the former is reaching far and wide enough to capture meaningful growth and pay off the added costs of capital.

The article Should You Buy These Tech Stocks? originally appeared on Fool.com and is written by David Gould.

David Gould has no position in any stocks mentioned. The Motley Fool recommends Google. The Motley Fool owns shares of Google and Western Digital.. David is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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