Alphabet (GOOGL) Boosts YouTube Capabilities With Cast Redesign

Zacks Equity Research
·3-min read

Alphabet’s GOOGL shares have rallied 23.5% in the year-to-date period, outperforming the Zacks Computer & Technology sector’s growth of 15.6%. The company is continuously benefitting from its growing YouTube capabilities on the back of new feature updates.

This is evident from the company’s latest Cast menu redesign of the YouTube app.

The updated Cast icon now features a floating bottom sheet with rounded corners, allowing users to control volume and voice search, and also provides remote control options for televisions.

Alphabet is expected to expand YouTube’s user base on the back of its latest Cast menu redesign.

Alphabet Inc. Price and Consensus

Alphabet Inc. Price and Consensus
Alphabet Inc. Price and Consensus

Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote

Growing YouTube Capabilities

Per a Grand View Research report, the global video streaming market is expected to witness a CAGR of 21.5% between 2024 and 2030.

Google remains well-positioned to capitalize on growth opportunities present in the video streaming space on the back of its growing YouTube capabilities.

Recently, the company enhanced YouTube’s user interface for Android TV with an animated comment count feature in the info pill section. This new feature addition aims to make full-screen viewing easier and less intrusive and enhance interaction with videos on displays.

Alphabet also expanded its YouTube Create video editing app for Android to 13 more countries, including Australia, Brazil, Spain, and the United States. The app simplifies short-form video creation for creators from various regions, eliminating the need for high-end computers and file transfers.

Google also redesigned the channel pages on YouTube for all Creators. The redesign features a larger background, subscriber count, an About description, and video carousels, aiming to improve the viewing experience for connected devices.

Conclusion

All the above-mentioned endeavors will continue expanding YouTube’s subscriber base. This, in turn, will continue aiding Alphabet’s Google Services segment, which remains the key growth driver of the company.

In the first quarter of 2024, the Google Services segment increased 13.6% year over year to $70.4 billion, which accounted for 87.4% of the total revenues.

The strengthening Google Services segment is expected to aid Alphabet’s overall financial performance in the near term.

The Zacks Consensus Estimate for 2024 total revenues stands at $295.53 billion, indicating year-over-year growth of 15.2%.

The consensus mark for 2024 earnings is pegged at $7.60 per share, indicating a 31.03% rise from the year-ago figure. The figure has been revised upward by 0.4% in the past 30 days.

Zacks Rank & Other Stocks to Consider

Currently, Alphabet sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the broader technology sector are Arista Networks ANET, Badger Meter BMI and Dropbox DBX, each sporting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Arista Networks’ shares have gained 26.4% in the year-to-date period. The long-term earnings growth rate for ANET is 15.68%.

Badger Meter’s shares have gained 25.4% in the year-to-date period. The long-term earnings growth rate for BMI is currently projected at 15.57%.

Shares of Dropbox have declined 23.6% in the year-to-date period. The long-term earnings growth rate for DBX is 11.44%

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Badger Meter, Inc. (BMI) : Free Stock Analysis Report

Alphabet Inc. (GOOGL) : Free Stock Analysis Report

Arista Networks, Inc. (ANET) : Free Stock Analysis Report

Dropbox, Inc. (DBX) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

  • Up next
  • Up next
  • Up next
  • Up next

Latest stories

  • Stock market today: Nasdaq leads gains to kick off new quarter as Tesla pops 6%

    Political turmoil in France gripped investors weighing whether stocks can build on their stellar first-half performance.

  • Now you can invest in digital gold from just RM10 with your TNG eWallet

    KUALA LUMPUR, July 2 — Malaysians can now invest in digital gold securely and conveniently from as low as RM10 following...

  • How do you count? Anwar asks Perikatan amid debate over proposed GIP acquisition of MAHB shares

    KUALA LUMPUR, July 1 — Prime Minister Datuk Seri Anwar Ibrahim today maintained that Malaysia is not at risk of losing c...

  • British couple become wealthier than Larry Fink after £2.5bn BlackRock deal

    A husband and wife duo who built an outdoor theatre on the grounds of their Suffolk farm estate have been catapulted into Britain’s rich list after netting £2bn from the sale of their financial data business.

  • Prime Broker Hidden Road Adds Major Crypto Exchanges, Expands Use of BlackRock’s BUIDL Token

    Hidden Road is now integrated with Coinbase International Exchange, OKX, Deribit, Bitfinex, AsiaNext, SIX Digital Exchange and Bullish.

  • Singapore to tighten casino rules to counter terrorism funding

    Singapore will lower the threshold for checks on cash deposits received by casinos in a bid to prevent exploitation by terrorist and criminal organisations.

  • Petrobras (PBR) Puts Off the Barracuda-Caratinga FPSO Tender

    Petrobras (PBR) delays the Barracuda-Caratinga FPSO tender for the second time due to difficulty in attracting floater companies for its Campos basin project.

  • Will Fed rate cut be 'reactive or proactive'?

    The June ISM manufacturing data fell short of expectations, reigniting speculation about a potential Federal Reserve rate cut. BCA Research chief US equity strategist Irene Tunkel joins Catalysts to share her insights on the central bank's next moves. Tunkel observes that "bad news appears to be good news" in this context. The slowing economic growth, she argues, creates conditions favorable for a Federal Reserve interest rate cut. She anticipates the first cut could come by the end of the year, partly due to "political uncertainty." However, Tunkel emphasizes that the crucial factor is whether the Fed's rate cut is "reactive or proactive." "I would argue that it may not matter when the Fed exactly cuts interest rates, but it matters what they say, and what is the perception of the market about the trajectory of interest rates," Tunkel tells Yahoo Finance. For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Angel Smith

  • Jobs data: Key reports investors are eyeing this week

    Investors are on high alert this week as crucial employment data is set to be released. The ADP report and the Labor Department's June employment figures are poised to provide fresh insights into the current state of the job market. Yahoo Finance anchor Josh Lipton joins Wealth! to summarize what is expected from these upcoming reports. For more expert insight and the latest market action, click here to watch this full episode of Wealth! This post was written by Angel Smith

  • Zacks Investment Ideas feature highlights: Lululemon, Nike, Ulta Beauty and ON Semiconductor

    Lululemon, Nike, Ulta Beauty and ON Semiconductor are part of the Zacks Investment Ideas article.

  • Can AI boom drive Nvidia to a $4tn valuation despite investor doubt?

    Powerful new chips are on the way but there are questions over whether tech firm’s growth can be sustained

  • Struggling with falling demand for farm equipment, Deere & Co. announces nearly 600 layoffs

    Deere & Co. is laying off nearly 600 workers as the farm equipment manufacturer deals with declining demand. Deere confirmed Monday that the production positions being cut are concentrated at two factories in Iowa and one at its home base in Moline, Illinois, where 280 employees will be laid off effective Aug. 30. A combined 310 workers will be let go at the Iowa locations.

  • US manufacturing extends slump; inflation pressures ebbing

    U.S. manufacturing contracted for a third straight month in June as demand remained subdued, while a drop in a measure of prices paid by factories for inputs to a six-month low suggested that inflation could continue to subside. The weakness at the end of the second quarter reported by the Institute for Supply Management on Monday was across the board, with ISM Manufacturing Business Survey Committee Chair Timothy Fiore describing manufacturers as demonstrating "an unwillingness to invest in capital and inventory due to current monetary policy and other conditions." Manufacturing is being pressured by higher interest rates and softening demand for goods, though business investment has largely held up.

  • Questor: This ‘wonder drug’ firm is being backed by top fund managers

    Time waits for no-one.

  • How to navigate CD investments before an interest rate cut

    As interest rates remain high and Wall Street awaits the Federal Reserve's rate cut, Curinos head of wealth Korrynn Baltzersen joins Wealth! to discuss how investors should navigate certificates of deposit (CDs) amid the current economic backdrop. "What we've seen for the first time in recent history is that wealth clients are adopting retail CDs. And what's happening there, at the start of 2023, CDs represented just 3% of wealth deposits. And clients were adopting CDs, about 10% of acquisition balances going into retail CDs. That picked up greatly last year, as you could get to a 5% handle on a CD, there's something in the mentality of an investor that 5% seems great. And so even wealth clients started adopting CDs at a much higher pace," Baltzersen explains. She notes that historically when the Federal Reserve has started cutting interest rates, "that's when the market outperformance led more investors into the market versus keeping that money in cash." She believes there will be a "real shift" once investors can no longer get a 5% handle, as "they can just get a higher yield in the market." For more expert insight and the latest market action, click here to watch this full episode of Wealth! This post was written by Melanie Riehl

  • Bull of the Day: Vistra (VST)

    Vistra helps investors benefit from both the energy transition and the AI boom. Vistra's recent pullback sets investors up to buy VST stock at a great entry point.

  • Meta stock dips after allegedly breaching EU antitrust rules

    Shares of Meta (META) are dipping after European Union regulators issued a preliminary finding accusing the company of violating the Digital Markets Act. The antitrust issue in question is the company's recently introduced ad-supported social networking service. Yahoo Finance Reporter Dan Howley joins Catalysts to analyze the European regulatory agency's preliminary finding and what it means for Meta moving forward. For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Nicholas Jacobino

  • Google buys stake in Taiwan solar power firm owned by BlackRock

    Google said it has taken a stake in Taiwan's New Green Power and could buy up to 300 megawatts of renewable energy from the BlackRock fund-owned firm to help cut its carbon emissions and those of suppliers. Companies are being pushed to cut greenhouse gas emissions linked to their operations and value chains by investors and Big Tech firms have been among the most ambitious in their targets. Google aims to constantly run on carbon-free energy wherever it operates.

  • French market leaps amid hopes Le Pen will fall short of outright victory

    Euro rises against dollar as far right makes gains but investors believe result could have been worse

  • Northern Data considers AI unit US IPO at up to $16 billion, Bloomberg News reports

    The company, which provides infrastructure for high-performance computing, plans to enlist an entity comprising its cloud computing unit Taiga, and data centers, called Ardent, on the Nasdaq stock exchange as early as the first half of next year, according to the report. After two sub-par years, the U.S. IPO market has shown signs of promise in 2024, with investors showing renewed interest in fresh listings buoyed by hopes of a soft landing for the economy. AI-based startups have also attracted huge investments fueled by burgeoning demand in artificial intelligence following the launch of OpenAI's ChatGPT.