Facebook (NASDAQ: FB) is venturing into a familiar hardware technology segment. According to a story published Friday in The Information, the social media giant is developing a smartwatch. Citing "people familiar with the device," the article said that Facebook's timepiece will initially run on Alphabet's (NASDAQ: GOOGL)(NASDAQ: GOOG) Android operating system (OS). However, according to the article's sources, the company is developing a proprietary OS that future versions of the watch will presumably utilize. Image source: Getty Images. As with other smartwatches on the market, Facebook's offering will feature health and fitness apps, in addition to messaging capability. Facebook has had big ambitions in the hardware space for years. Most notably, it bought high-profile virtual reality (VR) company Oculus for $3 billion in 2014. It also rolled out its Portal TV video communication system in late 2019. Oculus remains a leader in VR technology. While Portal TV received many lukewarm or even poor reviews upon launch, it has sold well recently due to the coronavirus pandemic, which has boosted reliance on digital communication. It was not immediately clear how Facebook's smartwatch will connect with any of the company's devices currently on the market. While a push into smartwatches is a logical move into a complementary hardware category, it will put Facebook in direct competition with the likes of Apple and Alphabet's Fitbit. Unless the company somehow distinguishes its product, it will have a tough fight on its hands against such successful rivals in the segment. On Friday, Facebook stock essentially traded sideways. It was outpaced by the 0.5% rise of the S&P 500 index. 10 stocks we like better than FacebookWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Facebook wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Eric Volkman owns shares of Apple and Facebook. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Apple, and Facebook. The Motley Fool has a disclosure policy.Source