YouTube’s (owned by Alphabet (GOOGL) (GOOG)) Chief Business Officer will be leaving the company early next year after serving the highly popular online platform for more than a decade. Alphabet primarily makes money from advertising and YouTube is one of its most important advertising platforms. However, the stock is unlikely to fall as a result of the departure.
GOOGL stock declined 0.83% to $109.42 on August 29. The stock gained 1.4% in Tuesday’s pre-market trading.
YouTube’s Chief Business Officer Quits
Robert Kyncl, a longtime YouTube executive, has decided to exit the company. The news was originally reported by Variety. Kyncl joined YouTube in 2010 and has been serving as the platform’s Chief Business Officer. He is credited for turning YouTube into an online video giant. Kyncl has been at the center of forging the kind of partnerships with traditional media operators and creator community that have benefited the platform.
Prior to YouTube, Kyncl served as a content executive at Netflix (NFLX) for more than seven years. YouTube has tapped Mary Ellen Coe, President of Google Customer Solutions, to succeed Kyncl as the Chief Business Officer effective October 3. Coe joined Google in 2012.
YouTube’s advertising sales increased to $7.34 billion in Q2 2022, from $7 billion in Q2 2021. YouTube introduced a short videos feature in a bid to counter the challenge from TikTok.
What Is GOOGL’s Price Target?
In July, Alphabet implemented a 20-for-one stock split. The stock has dropped about 25% year-to-date. Wall Street remains bullish on GOOGL stock. According to TipRanks’ analyst rating consensus, GOOGL stock is a Strong Buy based on 30 Buys and two Holds. The average Alphabet price target of $142.84 implies over 30% upside potential.
Alphabet is a favorite of small investors. TipRanks’ Stock Investors tool shows that retail investor sentiment is currently Positive on Alphabet. In the past 30 days, 1.6% of retail portfolios tracked by TipRanks increased their exposure to GOOGL stock.
Final Thoughts
Although the exit of a long-time executive like Kyncl may raise questions about the future of YouTube, I see no cause for concern. The tapping of an insider to take over from the departing executive offers confidence that YouTube is still in good hands. Moreover, Kyncl has agreed to stay on until 2023 to help with smooth transition.
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