GOOGL
🤔 A valuation comparison suggests YouTube, as a standalone entity within Google, could potentially be valued significantly higher than Netflix, given its size and reach.
undervaluation based on a sum-of-the-parts analysis, considering the value of YouTube, Google Cloud, core search revenue, and emerging AI ventures.
📉 Despite its market dominance and diverse revenue streams, the analysis implies Google’s current market capitalization might not fully reflect the intrinsic value of its individual components.
@bernardodegarcia:
“I think that what you have with YouTube… that offers… damn my… I had already forgotten. Then you have YouTube which is relatively similar to Netflix, more or less. Okay? And you imagine, well, if YouTube is bigger than Netflix and makes more money than Netflix and so on, well obviously… and Netflix is worth $400 billion right now, you consider, ‘Hey, and how much is YouTube worth?’ And you say, ‘Well, at least it will be worth a minimum of 25% more than Netflix, right? Put 25% more than Netflix, $500 billion.’ Okay? And then you have Google here, and Google is currently trading at 1.7 trillion. I mean, you have that 25% of Google minimum is YouTube, and then you say, ‘Well, and how much is Google Cloud worth, and how much is Google Revenue worth, and now how much is Google AI starting to be worth?’ There comes a time where, yes, I think we all agree that Google is too cheap. Same thing, but well. Anyway, fantastic is the party. Fantastic is the party.”
Watch the exact part of the video where @bernardodegarcia talks about Alphabet (Google) here:
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