YouTube Is A Lot Bigger Than You Think

The Investing Fool profile picture
The Investing Fool
71 Followers
(14min)

Summary

  • YouTube's revenue is often underreported, I aim to fix this by calculating its subscription revenue.
  • To gauge YouTube's margins I compare its expenses to that of Netflix.
  • My Free Cash Flow valuation of Alphabet suggests a value of $210, leading me to assign them a BUY.

Online streaming services Netflix YouTube Disney Plus Amazon Prime and Apple TV on smart phone screen

hocus-focus

Introduction

It continues to annoy me that the majority of the time Alphabet’s (NASDAQ:GOOG) YouTube is discussed, their revenue is described by just their advertising numbers and maybe at best, as an afterthought, they shout out the subscription portion. This leads

This article was written by

The Investing Fool profile picture
71 Followers
I am an ex-poker player and ex Mathematics teacher. I got lucky with some early investments but fell in love with researching and valuing companies, I have been lucky enough to be able to do that fulltime since 2016

Analyst’s Disclosure: I/we have a beneficial long position in the shares of GOOG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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