The world's largest online search engine,
, announced that Nest Labs, which it acquired recently, will stop
selling Nest Protect product, a smoke and carbon monoxide
detector, over safety concerns.
The product features Nest Wave which allows users to turn off
the alarm with a wave of their hand. A test revealed that any
unintended movements could be misinterpreted as a wave by the
smoke detector, thus disabling the alarm in the case of a real
Therefore, in order to prevent any accident, management
offered automatic deactivation of the feature on all smoke
detectors already purchased with immediate effect. Additionally,
the company will fully refund users who want to return the
However, the function will deactivate the alarm only
temporarily. In case of dense smoke, the alarm will ring again,
helping the home owner to know about the occurrence of the
Google acquired Nest Labs for $3.2 billion in cash earlier
this year. Nest Labs designs and manufactures sensor-driven,
Wi-Fi-enabled, self-learning, programmable thermostats and smoke
detectors. It was co-founded by former
) engineers Tony Fadell and Matt Rogers in 2010. This deal was
the second largest deal in Google's history after the 2012
acquisition of Motorola.
Google is increasingly extending its foothold in new areas
ranging from high-speed Internet access business to advanced
research on self-driving cars and robotics.
Recently, the company completed its long-awaited 2-for-1 stock
split. As a result, one non-voting Class C share will be issued
in lieu of each Class A and Class B share. Class A shares carry a
single vote while non-trading Class B shares (held by founders
Sergey Brin and Larry Page) carry 10 votes each. The Class A and
Class C shares will trade under the tickers GOOGL and GOOG,
We believe Google's stock split news will add to favorable
market sentiment as most of the Class C investors without a
voting right will get a chance to earn from Google's success in
Currently, other stocks that are performing well include
Interxion Holding NV
Akamai Technologies, Inc.
). All these stocks sport a Zacks Rank #2 (Buy).
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