Alphabet
’s
GOOGL
Google does not seem to be content on its laurels when it comes to YouTube advancements.
It has been constantly putting efforts toward redesigning YouTube’s interface as its urge to deliver an enhanced user experience continues to grow.
This is evident from the company’s recent move to test a different colored video progress bar on YouTube, which usually appears red.
This is specific to the dark theme, in which the progress bar will appear in a white or gray color instead of red.
The redesign is being currently tested for YouTube with Android as the OS.
The recent move comes after the rollout of a big redesign of YouTube across its mobile and web applications.
Growing YouTube Initiatives
The company’s growing YouTube efforts bode well for its strengthening initiatives to bolster Google Services.
Apart from the recent move, Google is gearing up to equip YouTube with a search engine capability, with the help of which, YouTube users will be able to find specific content in YouTube videos. Currently, the company is testing the new feature in the United States and India.
Further, it recently introduced handles for YouTube channels to support creators in establishing their distinct presence and brand on YouTube.
Additionally, the company announced two updates to its YouTube Partner Program to let users easily join YouTube and make money from the platform, mainly from YouTube Shorts. Google also introduced a Creator Music catalog for adding tracks to videos.
With consistent YouTube efforts, Google’s parent company, Alphabet, remains well poised to rapidly penetrate the booming global video-streaming market.
Per a Research and Markets report, the video streaming market size is expected to reach $330.5 billion by 2030, with a CAGR of 21.3% between 2022 and 2030.
According to Statista data, revenues in the underlined market are expected to hit $95.86 billion in 2023 and reach $139.2 billion by 2027, registering a CAGR of 9.8% between 2023 and 2027.
We note that Alphabet’s deepening focus on this promising market is likely to aid it in winning investors’ confidence in the near term.
Coming to the price performance, GOOGL has lost 39.1% in the past year against the
Computer and Technology
sector’s decline of 38.1%.
To Conclude
Alphabet’s growing endeavors to deliver an enhanced user experience are likely to bolster the adoption rate of the YouTube app, which in turn will contribute well to the Google Services revenues, which account for the majority of the total revenue.
In the third quarter of 2022, revenues from the Google services segment increased 2.5% year over year to $61.4 billion, accounting for 88.8% of the total revenues.
Zacks Rank & Stocks to Consider
Currently, Alphabet carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer & Technology sector are
Arista Networks
ANET
,
Agilent technologies
A
and
ASML Holding
ASML
. While Arista Networks sports a Zacks Rank #1 (Strong Buy), Agilent and ASML Holding carry a Zacks Rank #2 (Buy) at present. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
Arista Networks has lost 16.7% in the past year. The long-term earnings growth rate for ANET is currently projected at 17.5%.
Agilent has lost 7.9% in the past year. A’s long-term earnings growth rate is currently projected at 10%.
ASML Holding has lost 31.5% in the past year. The long-term earnings growth rate for ASML is currently projected at 23.74%.
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