Sony Is Making Strides

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In an industry where breakthrough technology is a requirement for firms to prosper, Sony (NYSE: SNE) looks to up its stake on innovation with the release of a revamped Smartwatch.

While it has been about two years since Sony announced the original Smartwatch, the new version aims to be what the last couldn't manage. The original release featured a low battery life and major software problems. But with one in three smartphone users telling BI Intelligence that they want a smart wristwatch, Sony's stock could benefit from the release, which could happen this month. While the release of a catchy watch would bump shares, the device could hurt the company if it's another dud. However, Sony looks to be in solid position prior to any release. The firm expects a hike in annual revenues next year, it stated in the first-quarter earnings report. The revised price target is $24.77, and is now at around $20. 

Google Glass could lead the way

Speaking of possible technological innovations, Google (NASDAQ: GOOG) Glass was used for the first time on June 22 to help a doctor record a surgery. Those watching were able to get a vivid view of the procedure. That's a major revelation and shows the gadget also has a niche market. The future of Google looks bright with its potentially innovative projects such as Google Glass, self-driving cars, and balloons that could provide the entire planet with Internet. However, it may take a major breakthrough to really send this stock into the stratosphere. 

Apple not releasing much

Many people have been criticizing Apple (NASDAQ: AAPL) for not appearing to be working on anything new. Aside from its recent iOS 7 software release, and rumored new models of the iPhone, the firm doesn't look to be up to much. However, given the number of patent infringements plaguing the industry, I can see why Apple would want to keep its projects confidential. After all, the firm invented the smartphone, and look at all the companies that have copied and profited from the technology. That makes Apple still a buy in my books, as the price is way off its 52-week high, and part of that reason is speculative. Investors now have the opportunity to buy the stock at a bargain.

Innovation is key

The prices of these stocks are largely driven off speculation, and that makes it very difficult for the short-term investor to make money. It's really gambling when an investor picks a stock based on the possibility that a gadget will catch on. Plus, it's often difficult to discern between the rumor mill and what is actually happening at these companies. The Sony Smartwatch provides a good indication for investors that the company is looking to strengthen its tech arm, but you should investigate the financials and the company's recent moves before deciding to pick up this stock. 

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Phillip Woolgar has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple and Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. Is this post wrong? Click here. Think you can do better? Join us and write your own!

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