Alphabet’s (NASDAQ:GOOGL) shares have surged 23.5% year-to-date, outperforming the Computer & Technology sector’s 15.6% growth. This rise is driven by the company’s continuous improvements in YouTube’s features.
New YouTube Cast Menu
Alphabet’s latest update to the YouTube app includes a redesigned Cast menu. The new Cast icon now features a floating bottom sheet with rounded corners, allowing users to control volume, perform voice searches, and access remote control options for televisions. This update is expected to attract more users to YouTube.
Expanding YouTube Capabilities
According to a Grand View Research report, the global video streaming market is projected to grow at a CAGR of 21.5% between 2024 and 2030. Google is well-positioned to capitalize on this growth through continuous enhancements to YouTube.
Recently, Google improved YouTube’s user interface for Android TV by adding an animated comment count feature to the info pill section, making full-screen viewing easier and more interactive. Additionally, the YouTube Create video editing app for Android was expanded to 13 more countries, including Australia, Brazil, Spain, and the United States. This app simplifies short-form video creation, eliminating the need for high-end computers and file transfers.
Furthermore, Google redesigned YouTube channel pages for all creators, featuring a larger background, subscriber count, an About description, and video carousels to improve the viewing experience on connected devices.
Conclusion
These enhancements are expected to expand YouTube’s subscriber base, boosting Alphabet’s Google Services segment, which is a key growth driver for the company. In Q1 2024, the Google Services segment grew 13.6% year-over-year to $70.4 billion, accounting for 87.4% of total revenues.
The strengthening Google Services segment is anticipated to support Alphabet’s overall financial performance in the near term. The Consensus Estimate for 2024 total revenues is $295.53 billion, indicating a 15.2% year-over-year growth. The consensus estimate for 2024 earnings is $7.60 per share, marking a 31.03% increase from the previous year, revised upward by 0.4% in the past 30 days.
Featured Image: Megapixl © Rafaelhenriquepress
Author Stephanie Bédard-Châteauneuf 
