Alphabet’s GOOGL Google is benefiting from an expanding clientele and strong partner base. The company’s shares have rallied 60.2% on a year-to-date basis compared with the Zacks Computer & Technology sector’s growth of 53%.
Google, via YouTube TV, recently partnered with Peloton Interactive’s PTON streaming service platform, Peloton Entertainment.
Per the terms of the partnership, Peloton All-Access members can stream their favorite television content from their Peloton Bike, Peloton Row or Peloton Tread.
The partnership would require Peloton All-Access members to have a YouTube TV subscription.
This move marks a significant step for Google to expand its YouTube TV subscriber base. This, in turn, will strengthen its footing in the global video streaming space, presenting a significant growth opportunity for Alphabet.
Per a Fortune Business Insights report, the video streaming market is expected to reach $1.9 trillion by 2030, indicating a CAGR of 19.3% between 2023 and 2030.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
YouTube TV in Focus
The latest move is in sync with Alphabet’s growing efforts to bolster its YouTube TV portfolio offerings.
Google’s latest partnership with Roku ROKU testifies to the aforesaid fact.
With this partnership, YouTube TV for Roku devices will feature a clock in the live guide. The clock is a convenient addition that was commonplace among traditional TV services.
Additionally, the company introduced a new button shortcut for YouTube TV users to easily switch between their last-viewed channels, allowing them to do so without interacting with the on-screen UI.
Alphabet also confirmed that YouTube TV subscribers can now select multiple games using multiview, a feature that allows them to watch multiple games simultaneously.
All the above-mentioned endeavors are expected to help Alphabet to compete well with industry peers like Disney DIS, which is also making concerted efforts to capitalize on the growth opportunities in the video streaming space.
Disney is riding on the success of its streaming service business, Hulu.
The company’s Hulu with Live TV plan offers live access to popular U.S. channels, on-demand content, and acclaimed titles like The Handmaid's Tale, Normal People, The Kardashians, Fleishman is in Trouble and Fresh. Users can customize their package with add-ons like Max.
Conclusion
Growing YouTube TV efforts are expected to aid this Zacks Rank #2 (Buy) company in strengthening its Google Services segment’s performance, which constitutes the majority of total revenues.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for fourth-quarter 2023 Google Services revenues is pegged at $74.77 billion, indicating growth of 10.2% from the 2022 level.
The strengthening Google Services segment is expected to aid its overall financial performance in the days ahead.
The consensus mark for fourth-quarter 2023 total revenues is pegged at $70.59 billion, indicating year-over-year growth of 11.8%.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>The Walt Disney Company (DIS) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Roku, Inc. (ROKU) : Free Stock Analysis Report
Peloton Interactive, Inc. (PTON) : Free Stock Analysis Report
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