Top Analyst Reaffirms 'Buy' on Google Stock, Despite Drop in YouTube Engagement
Top analyst Boone reaffirms a 'Buy' rating on Google stock despite a 1.2% year-over-year drop in YouTube's global viewing time, attributed to competition from TikTok and Instagram. He remains optimistic about Alphabet's core business, highlighting strengths in digital ads, cloud services, and AI. Boone believes YouTube's engagement may recover with new formats and AI tools. GOOGL stock has a Strong Buy consensus rating, with a target price of $253.66, indicating a potential upside of 7.22%. Year-to-date, GOOGL stock has risen over 25.38%.
YouTube Sees First Drop in Global Viewing Time
Boone said YouTube's global time spent fell 1.2% year-over-year, the first drop since Citizens began tracking usage. He noted that this decline could be a sign of rising competition from TikTok and Instagram, which continue to pull users toward short-form videos.
At the same time, TikTok's global time spent jumped 8.7% year-over-year, a sharp acceleration of more than 1,100 basis points from last year. Boone said this shows TikTok's growing pull among younger users, especially outside the U.S.
However, he also pointed out that Citizens' data doesn't include connected TV (CTV) viewing, where YouTube has been expanding quickly. That means YouTube's total watch time could be stronger than the data suggests, especially on TVs and streaming devices.
Boone Remains Upbeat about Alphabet's Core Business
Even with the dip in engagement, Boone said he remains upbeat about Alphabet's broader business, citing its strength in digital ads, cloud services, and AI. He believes YouTube's viewing trends could recover as AI tools and new formats boost engagement in the coming quarters.
"While competition is heating up, Alphabet's reach, product mix, and steady ad demand give it a clear edge," Boone said.
Is GOOGL a Good Stock to Buy Now?
According to TipRanks, GOOGL stock has a Strong Buy consensus rating based on 29 Buys, and eight Holds assigned in the last three months. At $253.66, the Alphabet share price target implies an 7.22% upside potential.
Year-to-date, GOOGL stock has gained over 25.38%.
