YouTube is a video-sharing website that allows users to upload and share videos online. YouTube was the second most popular website in the world in March 2021, just behind Google. Ad revenue accounts for $15.15 billion of YouTube's revenue in 2019. As a result, it's not unexpected that investors want to know how to buy YouTube stock.
Youtube is massive, and it's only growing. Many investors are clamoring to buy Youtube stock because it is the media platform of the present and future. Is it possible to buy Youtube stock, and if so, what is the Youtube stock symbol and price, and what else do you need to know?
Is YouTube a Public Company?
Because YouTube is so widely used, Is there a YouTube stock? is one of the most often asked questions. No, is the quick response. YouTube is owned by the same corporation that owns Google. In other words, you may trade or invest in YouTube by buying Alphabet $GOOGL stock.
YouTube is, without a doubt, the world's most popular media platform. Oh, and it's a multibillion-dollar corporation with $15.1 billion in yearly revenue in 2019.
I'm not sure what does scream opportunity more than this. I'd purchase YouTube stock, and thus Google shares, for these reasons alone.
Youtube's History
YouTube, founded by Jawed Karim, Steve Chen, and Chad Hurley, has grown to become one of the most popular websites in internet history.
YouTube's major purpose, according to its mission, is to give everyone a voice and show them the world. Their principles are founded on four fundamental liberties: expression, information, opportunity, and belonging.
As PayPal workers in 2004, the three immediately noticed there was no single web location where people could upload films. Surprisingly, both the Janet Jackson Super Bowl debacle and the December tsunami provided inspiration. YouTube was founded and registered in the offices above a pizzeria in California thanks to a $11.5 million investment from Sequoia Capitals in 2005.
YouTube was launched in 2005, and the public first had access to it in May of that year. In November 2005, Sequoia Capital invested $3.5 million, and the YouTube website was launched in December 2005, over a year after Vimeo. Vimeo was the first online video-sharing network to provide users with high-definition content, although it grew considerably more slowly than YouTube. When YouTube was debuted, it received 8 million daily views. In July 2006, the site was receiving 100 million daily video views and over 65,000 new videos were being published every day. In about 7 months, the number of views climbed by more than 12 times.
Google announced the acquisition of YouTube in October 2006 for $1.65 billion in Google stock. The agreement between Google and YouTube was finalized in November 2006. In 2015, Google restructured to form Alphabet Inc., a holding corporation that now includes YouTube as one of its subsidiaries.
YouTube's income increased by 36% in 2019, totaling $15.15 billion for the fiscal year. In 2019, this amounted to nearly 10% of Alphabet's total revenue.
Who is the owner of YouTube?
Google. YouTube was purchased by Google in 2006 for $1.65 billion in stock. It was Google's second-largest acquisition at the time.
Google evidently believed they were onto something, and judging by YouTube's initial success, they were correct. This is widely credited for launching YouTube's meteoric journey to prominence, and I agree.
Indeed, Google purchased YouTube in order to combine its search and organization capabilities with YouTube's vast video archive. In the grand scheme of things, this was a fantastic move on Google's behalf. The investment has proven to be one of the best the internet search engine behemoth has ever made.
How Big is Youtube?
To give you an idea of how big Youtube is, it is now ranked second by Alexa, an Amazon-owned website rating service (NASDAQ: AMZN). There are more than 400 hours of video uploaded every minute, and if they chose to compete with Netflix (NASDAQ: NFLX) and Hulu by syndicating TV series and films, they will already have a massive audience base that even the world's largest networks would envy.
As it turns out, this is something they've already planned and are working on. But, then then, who these days isn't attempting to create original programming? It appears to be the "in" thing, and even retail businesses are attempting to participate.
Overview of the YouTube Stock
It wasn't the most glamorous start, but who'd have guessed a 20-second film from the zoo would be the genesis of this online behemoth?
YouTube has come a long way since its Zoo days. They've recently introduced live streaming to the site itself. This is a feature that we use on a regular basis. Furthermore, five billion videos are seen every day, the site is used by over 1.3 billion individuals, and 300 hours of video are posted every minute.
To put it another way, watching all of the new content uploaded to YouTube in a single day would take you about 82 years.
CNBC calculated in 2017 that if Youtube shares were listed on the stock exchange, it would be worth more than $75 billion. This is obviously a large sum of money, but it is also significant since it dwarfs firms like Twitter (NYSE: TWTR) by being 5 times larger than Twitter has ever been. It's also higher than many other competitive online businesses, albeit it's still a lot less than Facebook (NASDAQ: FB), and we can't picture Youtube being content to stay so far behind its online media competitors.
Youtube's success is due to the fact that they have figured out how to attract and retain users while simultaneously making money from them. This is something Twitter failed to achieve, something Vine failed to achieve, and something that has harmed numerous internet businesses.
Advertisers, on the other hand, are just where they want to be on Youtube. They've figured out a method to link the service to their current Adsense and Adwords networks, allowing advertisers more ways to show advertising while also giving Youtubers a chance to supplement their income.
Every ad at the beginning of a video, every sponsored thumbnail, and every banner ad generates revenue for Youtube and, by extension, Google. Furthermore, they provide premium sponsored packages to advertisers that pay a lot of money to get their message in front of a lot of people, generating millions of dollars in revenue for Google every day.
Take a look at the stock ticker below to check the current Youtube stock price, or rather a price from their parent business. This is provided by a third-party, but they are always up to date, so as long as the stock markets are open when you read this, you should get an accurate price. Of course, as previously stated, this is not the stock price of Youtube, but because their success aids Alphabet's, it's still worth investing if you're enthused about the future of this video-sharing website.
Stock Market on Youtube
In the United States, Google is traded on the NASDAQ stock exchange. Look for the stock symbol GOOGL on this exchange if you want to invest in Youtube by purchasing shares in their parent firm. Google is a major player on this exchange, as well as in the United States.
Their sales exceeds $90 billion, which is greater than the GDP of many small businesses and places them alongside Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) as true modern-day international titans.
What is the stock price and ticker for YouTube?
YouTube does not have a stock price or ticker because it is not a publicly traded corporation.
YouTube is owned by Alphabet Inc., which trades under the tickers GOOGL and GOOG.
Both GOOGL and GOOG are currently trading at roughly $2,400 per share.
What Is the Best Way to Invest in YouTube Stock?
Because YouTube is owned by Alphabet Inc., it is not possible to own solely YouTube stock. Alternatively, you might put your money into the parent firm.
GOOGL and GOOG are the ticker symbols for Alphabet Inc. on the Nasdaq exchange. The GOOGL ticker is associated with Alphabet's class A shares, while GOOG is associated with its class C shares. The voting rights are the distinction between the two. GOOG shares do not have voting rights, whereas GOOGL shares do (one-share-one-vote).
Stock Symbol for YouTube
Because YouTube is a Google subsidiary, you must purchase Google shares in order to own a piece of the company. Google, on the other hand, is an Alphabet subsidiary. Google changed its name to Alphabet in 2015.
The corporation aspired to become a technology behemoth by diversifying beyond advertising and search engines.
Alphabet has two different stock symbols. There are two types of shares represented by these stock symbols:
To summarize, if you wish to invest in YouTube stocks, you can do so by purchasing GOOGL or GOOG shares. The purpose of the share categories is to ensure that Google insiders retain ultimate autonomy and control.
Google Stock isn't cheap at $1266.61 a share.
Options, on the other hand, are a less capital-intensive alternative. Did you know that you may own 100 shares of Google with just one option contract?
The beauty of options is that you don't have to pay for the 100 shares. I won't get into the specifics, but the cost of an option contract is a fraction of the cost of buying stock outright.
Future of Youtube Stock
With over 2 billion monthly active viewers, YouTube dominates the internet streaming video market. Despite its size, it is showing no signs of slowing down and has been aggressively expanding since its acquisition.
YouTube's ad revenue has been increasing at a rate of over 30% per year, outpacing Alphabet's overall revenue growth of roughly 20% per year.
According to revenue percentage, YouTube now accounts for about 9% of Alphabet's total revenue, and this percentage is increasing year after year.
This figure excludes earnings from YouTube Premium, YouTube Music, and YouTube TV subscriptions. If it were included, YouTube's overall revenue share of Alphabet's revenue would almost certainly exceed 10%.
YouTube TV
YouTube TV has had a lot of success recently. They claimed to have over 2 million subscribers last year. Not bad for a February 2017 launch of a streaming TV service. All of your favorite networks and local stations are now available. This is a direct competitor to Dish's "Sling TV," and it threatens to steal additional subscribers.
This service's ad income is nothing to sneeze at...
In 2019, alone, 15 billion will be spent! When you consider that YouTube Music and YouTube Premium (ad-free) both have 20 million subscribers, you can see where YouTube TV is headed.
What Are the Benefits of Buying Toutube Stock?
You will be investing in the following firms if you opt to invest in YouTube:
Google search: This is the world's most popular search engine, with a market share of about 90% (YouTube search is actually the world's second-largest search engine).
Google Cloud Platform (GCP): Despite its lesser size than Amazon Web Services and Microsoft Azure, Google Cloud is rapidly expanding in the lucrative cloud computing market.
Android is the most popular mobile operating system in the world.
Google Play Store: Google's app store generates billions of dollars in annual sales. For everything sold through the app store, it receives a share of the money.
Gmail, Google Maps, and Google Chrome are examples of programs that dominate their category.
Investing in YouTube, then, can be seen of as a diversified investment in online advertising, cloud computing, video streaming, artificial intelligence, and other high-tech initiatives.
The Benefits and Drawbacks of Investing in YouTube
YouTube has a hugely successful business model. Investing in YouTube is a good choice for a variety of reasons.
Here's how YouTube can make sure you get paid:
Alphabet's stock has a strong liquidity resistance due to YouTube's popularity.
The pandemic has increased demand for YouTube, propelling it to the forefront of trends. The chances of Alphabet's stock appreciating in such a scenario are higher.
YouTube is expected to contribute 13% of Google's advertising revenue, according to Morningstar.
Alphabet's stock is a money printing machine, with strong margins in the 20-30% region.
Google can potentially profit from YouTube by selling off its content. It can offer viewers subscription services and movie rentals.
The sole danger of buying Alphabet stock is the fierce competition. Other video-sharing services may pose a danger to YouTube, which is sandwiched between an increasing number of competitors.
Top YouTube Stock Alternatives
Stock is available from a slew of different cutting-edge video firms. These businesses are suitable substitutes for YouTube stocks:
HBO is a cable television network (owned by AT&T)
Vimeo is a video-sharing platform (owned by IAC)
Twitch is a video streaming service (owned by Amazon)
Possibili (Chinese video-sharing platform)
iQIYI iQIYI iQIYI (Chinese video platform)
Hulu is a popular streaming service (owned by Disney)
Disney+ is a new streaming service from Disney (owned by Disney)
Reels from Instagram (owned by Facebook)
Netflix
YouTube Stock Frequently Asked Questions
When did Google get its hands on YouTube?
YouTube was purchased by Google for $1.65 billion at the end of 2006. YouTube is unable to trade on its own as a result of this.
Is it possible for me to purchase YouTube stock?
No, because YouTube is owned by Alphabet Inc., it is not feasible to own solely YouTube shares.
How do I go about purchasing YouTube stock?
You can get YouTube stock by purchasing the parent company's stock. You'll own a piece of YouTube if you buy Alphabet business stock.
Conclusion
Although it is not possible to buy YouTube stock directly on the stock market, buyers can buy Alphabet's parent company's stock instead (GOOG, GOOGL). As a result, you will own a portion of YouTube, as well as other fantastic products and companies in Alphabet's portfolio. Remember, even with safe bets like Alphabet, it's always a good idea to understand how to research and choose companies before you start picking stocks on your own.
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