Shares of smart home and security companies fell Wednesday on the news that Apple Inc. (NASDAQ:AAPL) is reportedly developing a lineup of connected home devices with LG Electronics.

REZI, ARLO, ALLE Lead the Slide

Resideo Technologies Inc. (NYSE:REZI) tumbled 7.19% to close at $17.56 on Wednesday.

It sells thermostats and other temperature controls, smoke and carbon monoxide detectors, security products, and video cameras. The stock slipped another 0.74% to $17.44 in premarket trading on Thursday. It is down 28.21% this year and 40.51% over the past year.

Arlo Technologies Inc. (NYSE:ARLO) fell 6.64% to close at $11.95 on Wednesday and was flat in premarket trading Thursday. It makes Wi-Fi-enabled security cameras, video doorbells, floodlight cameras and home security systems.

The stock is down 9.67% this year and 30.76% over the past year.

Allegion PLC (NYSE:ALLE)  dropped 4.70% to close at $147.91.

Smaller Losses

Alarm.com Holdings Inc. (NASDAQ:ALRM) provides software that runs smart home security, video, locks and thermostats for service providers. The stock fell 2.55% to close at $54.68.

Johnson Controls International PLC (NYSE:JCI) fell 1.78% to $155.93, and Carrier Global Corp. (NYSE:CARR) lost 1.96% to $55.

Johnson Controls shares have gained 27.49% and 43.81% over this year and the past year, respectively.

Apple to Compete With Amazon, Google

The reported partnership could put Apple and LG in greater competition with Amazon.com Inc.’s (NASDAQ:AMZN) Ring security lineup and Alphabet Inc.-owned (NASDAQ:GOOG) (NASDAQ:GOOGL) Google’s Nest products, which already include doorbells, cameras, thermostats and other connected-home devices.

Shares of Amazon rose 1.42% to close at $259.92 on Wednesday, while edging lower by 0.22% in early premarket trading to $259.34 on Thursday. On the other hand, Alphabet’s Class A shares gained 0.81% to $350.5 on Wednesday. In pre-market trading, the stock was down 0.4% to $349.09.

Price Action: Apple’s shares closed 0.91% higher on Wednesday at $336.67 and gained 0.27% to $337.59 in early pre-market trading on Thursday.

Benzinga Edge rankings indicate Apple’s stock has a Momentum score in the 87th percentile and a Growth score in the 40th percentile.

Photo courtesy: Shutterstock

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