Written by 5:48 pm How to Buy Stocks

Buying YouTube Stock: Company Details, Price, Symbol, And More

YouTube is one of the most prominent names for both its social and financial capabilities. With its unstoppable growth, who wouldn’t want to invest in this platform?

We’ve gathered a few facts that will interest anyone willing to buy YouTube stocks. Let’s see what the video-sharing platform has in store for investors!

YouTube Overview

The primary goal of YouTube as a video-sharing platform is to give everyone a voice. They base their values on four essential freedoms – opportunity, belonging, information, and expression.

Ex-PayPal employees Chad Hurley, Jawed Karim, and Steve Chen founded the company in 2005. They opened doors to the platform for public testing in the same year. During its initial phase, YouTube enjoyed about 8 million views a day.

The platform offers various video content such as movie trailers, live streams, documentaries, vlogs, etc.

Around October 2006, YouTube announced that Google acquired the company for $1.65 billion. In the fiscal year 2019, YouTube reported a whopping revenue of 36.5%.

YouTube Company Profile

Youtube is a diverse company, and it is natural to find human resources ranging in thousands. This section will give you insights into YouTube’s profile. 

You can refer to this table for comprehensive information on YouTube company profile:

Total Number Of EmployeesYouTube currently enjoys a total human resource strength of 10,000 employees.
Total Number Of ShareholdersN/A
Management Board Members N/A
Supervisory Board MembersN/A
Shareholding CompaniesThe most prominent shareholding companies of YouTube are Black-Rock, Fidelity, and Vanguard Group.

YouTube Company Financials

For the first time in 2020, Google, YouTube’s parent company, revealed that the video-sharing platform is a $15 billion-a-year business. With more than 20 million subscribers worldwide, YouTube is one of the most successful social platforms.

The company claims that the majority of its revenue goes to paying the content creators. It is estimated that YouTube could soon stand at par with Netflix’s revenue figures.

Here’s a chart describing YouTube’s revenue in the past ten years.

YearRevenue
2010$0.8 billion
2011$1.3 billion
2012$1.7 billion
2013$3.1 billion
2014$4.2 billion
2015$5.5 billion
2016$6.7 billion
2017$8.1 billion
2018$11.1 billion
2019$15.1 billion
2020$19.7 billion

If YouTube were a standalone company, it would be worth $140 to $300 billion. Here are a few other statistics about YouTube that might interest you:

  • In 2020, YouTube Premium subscriptions touched a 30 million mark.
  • YouTube managed to generate $19.7 billion in revenue in the year 2020. Those figures represent about a 30.4 percent boost year on year.
  • As many as 2.3 billion people are using YouTube at least once a month.

Below you can find ratios and financial idicators of youtube stock’s shareholder company alphabet.

On the chart below you can see  key balance sheet indicators and trends

Also we identified key profit and loss statement items  please see chart below

Also as cash flow is one of the key indicators for determining Youtube stock price please see below key data items from cash flow statements

Below you can see also key ratios and key indicators from the latest updated financial statements which will help us determine Youtube stock price  projections.

Financial Analysis Summary

YouTube bagged the title of Google’s second-largest acquisition in 2006 when the tech giant bought it for $1.65 billion. At that time, a few analysts claimed that Google might not have made the right move by making such extensive spending.

However, a decade later, YouTube turned out to be Google’s best consumer tech acquisition ever. You should know that Google does not offer much transparency over YouTube’s profit levels.

RBC Capital analyst Mark Mahaney claims that YouTube’s annual revenue is increasing by about 40% per year.

The lack of disclosure by the parent company is a subtle reminder of YouTube’s profitability. If Youtube continues on its current trajectory, it can book between $29 billion to $30 billion in the coming couple of years.

A Pew report suggests that the usage of YouTube by US adults saw a growth of 81% in 2021. Also, in the last couple of years, Alphabet shares grew from $745 to $1,784.

Is YouTube Publically Traded?

The urge to invest in a profitable company like YouTube is understandable. However, you should know that YouTube does not trade independently. In other words, no, Youtube is not publically traded.

Alphabet Inc. has 100% ownership of the video-sharing platform. Owing to this, you can only indirectly own YouTube by investing in Alphabet Inc.

So, if you were wondering, “is YouTube a public company or not?”, the answer is no. By buying Alphabet shares, you’ll also enjoy the growth that YouTube contributes to the parent company.

How To Buy YouTube Stock?

Like we have mentioned earlier, YouTube is a subsidiary of Alphabet Inc. As a result, it is impossible to purchase just YouTube stocks directly. However, you can own a part of it by investing in its parent company.

You can find the Alphabet in Nasdaq exchange under the ticker symbols GOOG and GOOGL. The difference between the two ticker symbols is simple. GOOG is associated with category C shares, and GOOGL ticker is associated with the company’s category A shares.

The actual difference between the two is having a voting right and not having any voting rights. With GOOG shares, you have no voting rights in the company. On the other hand, with GOOGL shares, you can enjoy a one-share-one-vote system.

Make sure to choose a renowned and safe broker to buy Alphabet Inc. stocks. You need to have a brokerage account to purchase Alphabet Inc. stocks.

Using your brokerage account, you should use the company’s ticker symbol and input the order.

YouTube Stock Symbol

Since YouTube is a subsidiary of Google, you must invest in Google stocks to own a part of YouTube. However, Google itself is a subsidiary of Alphabet. Around 2015, Google renamed itself Alphabet.

The company wanted to diversify beyond advertising and search engine and turn into a technology conglomerate.

There are two stock symbols for Alphabet. These stock symbols represent two different share categories:

  • GOOGL
  • GOOG

The bottom line is, if you want to own YouTube stocks, you can do it either by buying GOOGL or GOOG shares. The reason for the share categories is to ensure that the ultimate autonomy and control remain with Google insiders.

Rewards And Risks Of Investing In YouTube

YouTube is running a tremendously successful business. There is a multitude of reasons why investing in YouTube through Alphabet is a fantastic idea.

Here’s how YouTube can ensure rewards:

  • Owing to YouTube’s popularity, Alphabet’s shares have high resistance to liquidity.
  • The pandemic has accelerated the demand for YouTube, pushing it to become the epicenter of trends. In such a scenario, the likelihood of appreciation of Alphabet’s stocks is more.
  • Morningstar estimates that Google’s advertising revenue will receive a 13% contribution from YouTube.
  • Alphabet’s stocks are a cash printing machine as it has high margins of 20-30% range.
  • Google also has the option to cash out on YouTube by selling off content. It can roll out subscription services and movie rental to the viewers.

The only risk of investing in Alphabet shares is the enormous competition. With YouTube being sandwiched between more and more competitors, other video-sharing platforms can be threatening.

Top Alternatives Of YouTube Stock

Many other cutting-edge video companies offer stock. These companies are excellent alternatives to YouTube stocks:

  • HBO (owned by AT&T)
  • Vimeo (owned by IAC)
  • Twitch (owned by Amazon)
  • Bilibili (Chinese video-sharing platform)
  • iQIYI (Chinese video platform)
  • Hulu (owned by Disney)
  • Disney+ (owned by Disney)
  • Instagram Reels (owned by Facebook)
  • Netflix

Key News About YouTube Stock

Since YouTube does not trade independently, all news related to its stock displays under Alphabet stocks news. The latest news on GOOG stocks claims that the company stock prices took a plunge by 0.15%.

In the past few weeks, the typical GOOG stock news is only displaying underperformance. About a month back, Alphabet Inc. (GOOG) reported a 52-week high.

Apart from that, Alphabet doesn’t have any stock news to offer to investors.

FAQs

1.     Is there a YouTube stock?

The answer is no. YouTube is not a publically traded company. As a result, you won’t find any YouTube stock price or ticker.

2.     When did Google acquire YouTube?

Google acquired YouTube at the end of 2006 for $1.65 billion. Owing to this, YouTube cannot trade independently.

3.     How can I buy YouTube stocks?

You can buy YouTube stocks by investing in stocks of its parent company. By buying Alphabet company stocks, you’ll also own a part of YouTube.

Summary

This powerhouse platform is ever-growing in terms of users. If you are looking for a profitable long-term investment, this is it.

However, since YouTube is a subsidiary of Google, it does not trade independently. The best way to buy YouTube stocks is by buying shares of YouTube’s parent company – Alphabet (Google).

Source

Nasdaq.Com

Bloomberg.com

Youtube.com

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