Home automation plays Echelon, Control4 skyrocket following Google/Nest

|About: Echelon Corporation (ELON)|By:, SA News Editor

Home automation hardware/software vendors Echelon (ELON +38.3%) and Control4 (CTRL +18.8%) are blasting off in response to Google's $3.2B acquisition of intelligent thermostat/smoke alarm maker Nest.

A smart wager or irrational exuberance? Investors appear to be betting Google's move will spark broader M&A activity in the home automation space, as tech giants strive to build end-to-end platforms for connected homes. A year ago, Microsoft bought home automation/media-sharing software firm R2 Studios.

Cowen observes Control4 has formed a partnership with Nest that allows the former's apps and remotes to control the latter's hardware.

Robotics plays received a similar boost last month after Google bought defense robot maker Boston Dynamics.