Thread by @Matt_Cochrane7, 1/ I believe one of the most undervalued assets on Wall Street [...]

Matthew Cochrane

Matt_Cochrane7

1/ I believe one of the most undervalued assets on Wall Street is Alphabet& #39;s YouTube. Let& #39;s discuss.

Long $GOOGL $GOOG

2/In 2019, YouTube CEO Susan Wojcicki announced the video content giant boasted more than 2B monthly users and that 250M hours were being consumed on the platform every single day. https://variety.com/2019/digital/news/youtube-2-billion-users-tv-screen-watch-time-hours-1203204267/">https://variety.com/2019/digi...

YouTube Now Has 2 Billion Monthly Users, Who Watch 250 Million Hours on TV Screens Daily

In its pitch to marketers, YouTube touted reach of 2 billion monthly users and said viewing on TV screens is now 250 million hours daily.

https://variety.com/2019/digital/news/youtube-2-billion-users-tv-screen-watch-time-hours-1203204267/

3/ In 2020 Q1 conference call, $GOOG CEO Sundar Pichai stated that YouTube watch time had "significantly increased."

Pichai specifically called out livestreams, noting that singer Andrea Bocelli scored 39M views when he sang live on Easter morning.

4/ Teenagers spend 31% of their daily video consumption on the platform.

Source: https://www.businesswire.com/news/home/20200408005477/en/Piper-Sandler-Completes-39th-Semi-Annual-Generation-Survey">https://www.businesswire.com/news/home...

5/ In Q1, YouTube ad revenue grew 34% YOY to $4.04B.Significant YouTube revenue growth persisted until late in Q1 w/ different performance trajectories for higher-level brand ads and ads w/direct response components (think app installs and gaming).

6/ Direct response continued to have substantial YOY growth throughout the entire quarter. Brand advertising growth accelerated in the first 2 months of quarter, but then experienced significant headwinds in late March.

7/ But while ad revenue will rise and fall depending on macroeconomic factors, it& #39;s clear the viewers are there to stay, meaning the ad revenue will always return. No other platform gives you so much educational, informative, and entertaining content.

Long YouTube. Long $GOOG/L

8/ More

h/t: @LukaGallinari https://twitter.com/mikeddano/status/1258466128776491010">https://twitter.com/mikeddano...

https://twitter.com/mikeddano/status/1258466128776491010

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