YouTube is one leading app that many people cannot seem to get enough of. After all, it keeps getting better, offering both creators and viewers the best entertainment and opportunities.
However, it wouldn’t be wrong to mention that its true net worth is often overshadowed by its own parent firm Alphabet whose valued at $2.3 trillion thanks to being a leader in search and AI.
But still, the figure underplays YouTube’s actual value which as experts predict comes at a staggering $455B alone, as reported by Bloomberg. In case you might be wondering how much that is, it’s nearly 50% more than the market cap we’ve seen with Netflix.
Thanks to Alphabet’s greatness, YouTube rarely gets the fandom that it deserves as is the case with other entities owned by Alphabet. Moreover, analysts mentioned how YouTube’s shares cannot be traded separately as it is entangled in a mess. This includes Alphabet’s worries about AI replacing search one day but again, this threat is not linked to YouTube.
So if it were to get separated, it would keenly benefit those who wish to invest in the leading app, thanks to its leadership in the world of streaming. In fact, keeping shares separate would mean tradeoffs that give rise to a $15 increment in every share of Alphabet.
The news is not new. Many other finance experts have criticized Alphabet for its complex structure and operations and how it tends to disguise YouTube’s true value from the public view. Moreover, regulatory risks to dismember the company in the past have also gained traction from investors, as compared to seeing it as a threat.
Alphabet has done a great job at outperforming many tech rivals in 2024, outpacing Microsoft, Apple, and Amazon. But the leader is Nvidia whose AI chips are very much in demand, thanks to the growing trend in AI today.
YouTube has more interest in terms of rising shares for streaming. So many consumers continue to shift to different platforms and far from cable television and broadcasts. We also see advertising revenue from the app grow by close to 17% to hit the $37B mark this year and another 14% to reach an estimated $42B by next year as per stats from Bloomberg.
Alphabet has been getting a lot of money through apps, devices, and subscriptions for years and the YouTube app’s subscriptions are included. The latter is said to expand in the upcoming few years as well.
Meanwhile, revenue at Netflix is said to hit $38.7B this year and most of that comes from streaming alone while YouTube on the other hand is more linked to 10% of the total sales from its parent firm.
Yes, Netflix might be dominating but a new survey proves that YouTube is catching up very closely. It’s the favorite option for those seeing content on mobile devices.
Alphabet keeping YouTube under its control means more gross revenue and the key factor that drives growth. Did we mention how it’s also one of the organization’s main strengths for the Generative AI strategy?
Image: DIW-Aigen
Read next: Instagram Confirms Short Videos Are The Way To Go As App Removes Focus From Longform Content
However, it wouldn’t be wrong to mention that its true net worth is often overshadowed by its own parent firm Alphabet whose valued at $2.3 trillion thanks to being a leader in search and AI.
But still, the figure underplays YouTube’s actual value which as experts predict comes at a staggering $455B alone, as reported by Bloomberg. In case you might be wondering how much that is, it’s nearly 50% more than the market cap we’ve seen with Netflix.
Thanks to Alphabet’s greatness, YouTube rarely gets the fandom that it deserves as is the case with other entities owned by Alphabet. Moreover, analysts mentioned how YouTube’s shares cannot be traded separately as it is entangled in a mess. This includes Alphabet’s worries about AI replacing search one day but again, this threat is not linked to YouTube.
So if it were to get separated, it would keenly benefit those who wish to invest in the leading app, thanks to its leadership in the world of streaming. In fact, keeping shares separate would mean tradeoffs that give rise to a $15 increment in every share of Alphabet.
The news is not new. Many other finance experts have criticized Alphabet for its complex structure and operations and how it tends to disguise YouTube’s true value from the public view. Moreover, regulatory risks to dismember the company in the past have also gained traction from investors, as compared to seeing it as a threat.
Alphabet has done a great job at outperforming many tech rivals in 2024, outpacing Microsoft, Apple, and Amazon. But the leader is Nvidia whose AI chips are very much in demand, thanks to the growing trend in AI today.
YouTube has more interest in terms of rising shares for streaming. So many consumers continue to shift to different platforms and far from cable television and broadcasts. We also see advertising revenue from the app grow by close to 17% to hit the $37B mark this year and another 14% to reach an estimated $42B by next year as per stats from Bloomberg.
Alphabet has been getting a lot of money through apps, devices, and subscriptions for years and the YouTube app’s subscriptions are included. The latter is said to expand in the upcoming few years as well.
Meanwhile, revenue at Netflix is said to hit $38.7B this year and most of that comes from streaming alone while YouTube on the other hand is more linked to 10% of the total sales from its parent firm.
Yes, Netflix might be dominating but a new survey proves that YouTube is catching up very closely. It’s the favorite option for those seeing content on mobile devices.
Alphabet keeping YouTube under its control means more gross revenue and the key factor that drives growth. Did we mention how it’s also one of the organization’s main strengths for the Generative AI strategy?
Read next: Instagram Confirms Short Videos Are The Way To Go As App Removes Focus From Longform Content
