Alphabet’s (GOOGL) video sharing platform YouTube plans to leverage emerging technologies to cut fraud in the digital art market. Reuters reports that the streaming service also plans to offer a more social viewing experience for gaming content.
Alphabet is a holding company with Google as its wholly-owned subsidiary. Google accounts for 99% of Alphabet’s total revenues, mostly from online ads.
YouTube’s NFT Push
YouTube has already started exploring the potential use of Web3 technologies such as NFTs as it looks to offer users a verifiable way of owning unique videos, art, or digital assets. In addition, the Alphabet unit also plans to make NFTs safer bets at a time of increased scams and copyright theft.
The use of NFTs could allow YouTube to enhance the ability to verify the legitimacy of assets. It could also offer a way for fans to own unique videos on the platform as well as photos and art.
The Alphabet unit is also increasing its focus on the metaverse to enable the sharing of virtual worlds and allow people to interact through avatars. While YouTube does not have any firm plans yet, it could make it easier for people to watch videos together in the metaverse.
MKM Partners analyst Rohit Kulkarni recently reiterated a Buy rating on Alphabet stock and raised the price target to $3,375 from $3,150. Kulkarni’s price target suggests 21.74% upside potential. According to the analyst, the company delivered solid Q4 results thanks to search and cloud growth. Robust advertising revenue growth signals a healthy demand environment amid volatile supply chain and macro uncertainties.
Consensus among analysts is a Strong Buy based on 31 Buys. The average Alphabet price target of $3,498.71 implies 26.20% upside potential.
GOOGL scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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