From Google (GOOG 1.15%) (GOOGL 1.05%) Workspace to YouTube TV, Alphabet still has untapped potential and revenue to unlock in five to 10 years from now. In this clip from “The Rank” on Motley Fool Live, recorded on June 13, Motley Fool contributor Connor Allen discusses the many revenue streams of Alphabet, and why there’s still a lot to look forward to in the future as an Alphabet shareholder.
Connor Allen: There’s a lot to like here. Google Cloud, one of their customers is Home Depot (HD -1.00%). Home Depot talks about how great of an experience it is. It really helped them with some of their inventory, with their AI and their customer support line. Not really sure how their customer support line tied into the Cloud, but somehow Google Cloud was able to help Home Depot there. Then, YouTube. YouTube has more revenue than Netflix (NFLX 1.25%). If you look at the segment and revenue, you might not think that. You might think the numbers are a little bit off. You say Netflix has a little bit of higher revenue than YouTube, but it’s not by much. But if you actually include the premium YouTube subscribers that Google doesn’t include in their segmented revenue and you calculate that out at $10 a month times the millions of users that they have, their revenue does surpass Netflix, which is pretty incredible to think about because most of that money is coming from ads. Google is the company to own if you want to own someone in the ad space and digital advertising space. You think about where YouTube will be in five, 10 years. Everything they’re in, education, entertainment, sports, they’ve got YouTube TV. There’s so much opportunity here. That has proved to be a great investment in buying YouTube for Alphabet. Then, there is some untapped potential here for Google Maps and Google Workspace. There are some paid versions for Google Workspace. It’s like your Office 365 from Microsoft (MSFT 1.09%). Your Word which is Docs, your Slides on Google, which is PowerPoint on Microsoft. There’s a lot of opportunity in Google Workspace, I think, in order to monetize it more because it’s used vastly by so many users. Also, Google Maps too. Google Maps has over 150 million active users per month. This is a service that they’re basically offering for free. That there really isn’t any ad money that they’re generating from Google Maps. There is a little bit from Waze, which was an acquisition that Google made a few years ago. But I think there’s a lot of opportunity there for them to maybe get some more money from Google Maps in terms of ads, maybe up-charge a little bit on Google Workspace because it is something that is used by so many people. There’s a lot to like here currently and also for the future, for Alphabet.