Alphabet Boosts YouTube Efforts With Android TV Feature

Alphabet's (NASDAQ:GOOG) Google recently enhanced YouTube's user interface (UI) for Android TV with an animated comment count feature in the info pill section.
The video info pill section now displays a short animation, YouTube channel name, comments count, and "Learn more about this video" message when users hover over it, with no effect on content viewing.
This new feature addition aims to make full-screen viewing easier and less intrusive and enhance interaction with videos on displays.
Alphabet is expected to expand YouTube's user base among Android TV users on the back of its latest move.

Growing Focus on YouTube

Apart from the animated comment count feature, the company added a song search capability for YouTube Music on Android devices. YouTube Music now features a dedicated button next to voice search, allowing faster access by tapping the search icon in the top-right corner.
Google, via YouTube TV, partnered with Peloton Interactive's (NASDAQ:PTON) streaming service platform, Peloton Entertainment.
Per the terms of the partnership, Peloton All-Access members can stream their favorite television content from their Peloton Bike, Peloton Row or Peloton Tread. Further, Google launched YouTube Create, a mobile app designed to streamline video production for creators, offering AI-enabled editing, captioning, voiceover, filters and royalty-free music features.
The company also introduced AI-powered features to YouTube, including Dream Screen for seamless video backgrounds, production tools for quick editing and YouTube Create, which is a mobile app for AI-enabled video production.
Alphabet will continue its Coachella streaming partnership in 2024, offering a multiview experience on the YouTube app, allowing viewers to watch up to four live stages simultaneously.

Wrapping Up

All the above-mentioned endeavors will strengthen YouTube's subscriber base, which, in turn, will solidify Alphabet's footing in the global video streaming space, presenting a significant growth opportunity for the company.
Per a Fortune Business Insights report, the video streaming market is expected to reach $1.9 trillion by 2030, witnessing a CAGR of 19.3% between 2023 and 2030.
Moreover, a strong YouTube subscriber base will, in turn, aid Alphabet in strengthening its Google Services segment, which has been the key growth driver of the company. Its shares have rallied 10.5% in the year-to-date period compared with the Zacks Computer & Technology sector's growth of 9.2%.
The strengthening Google Services segment is expected to aid its overall financial performance in the near term.
The Zacks Consensus Estimate for 2024 total revenues stands at $286.48 billion, indicating year-over-year growth of 11.7%.
The consensus mark for 2024 earnings is pegged at $6.78 per share, which has risen by a penny in the past 30 days.

Zacks Rank & Stocks to Consider

Currently, Alphabet carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Applied Materials (NASDAQ:AMAT) and Dell Technologies (NYSE:DELL), each carrying a Zacks Rank #1 (Strong Buy) at present.
Shares of Applied Materials have gained 28.8% in the year-to-date period. The long-term earnings growth rate for AMAT is 8.32%.
Shares of Dell Technologies have gained 59% in the year-to-date period. The long-term earnings growth rate for DELL is currently projected at 12%.

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