Alphabet’s Undervalued Potential: YouTube as a Standalone Giant

Alphabet Inc., the $2.3 trillion tech behemoth behind Google and YouTube, reported $96 billion in revenue last quarter—a testament to its entrenched dominance across digital ecosystems. At a forward P/E of 20.2, the stock presents a compelling valuation case for investors.

YouTube emerges as a hidden gem within the empire: 2.5 billion monthly users drive $9.8 billion in ad revenue (excluding subscriptions), with network effects rivaling Netflix in U.S. TV viewership share. Conservative estimates suggest YouTube alone could justify a $502 billion valuation.

The broader portfolio—Google Search (56% of Q2 revenue), Android, Chrome, and Waymo—cements Alphabet's position as a diversified tech titan. Market sentiment overlooks the sum-of-parts potential, creating an asymmetric opportunity.