YouTube Subscription Revenue Growth Seen Bigger Driver Of Google Stock
Summary
YouTubes non-advertising subscription revenue will boom and emerge as a bigger driver of Google stock valuation, says one analyst. Bank of America analyst Justin Post says subscription revenue will become a bigger part of the unit of Google-parent Alphabet (GOOGL). "Based on an increasing, but still small, share of paid TV and music subscribers plus price increases, we estimate YouTube non-advertising subscription revenue can grow at a 28% five-year compound annual rate from $5.2 billion in 2020 to $17.6 billion by 2025," Post said in a report to clients. "The recent YouTube TV fee increase to $65 per month has raised optimism that Google is looking to drive positive margins," Post added. Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.