Analysts value Google parent Alphabet at $2.3 trillion, but YouTube alone is worth $455 billion. They argue separating YouTube could benefit investors, given its projected ad revenue growth.
Analysts at Needham & Co. believe this split would reflect Alphabet's true value and protect it from AI threats to its search business. They suggest even making 5% of YouTube tradable could boost Alphabet's stock by $15 per share.
Despite calls for transparency and potential regulatory breakups, Alphabet's complex structure obscures its individual business values. YouTube remains a key growth driver, with significant ad revenue projections for 2024 and 2025.