Alphabet’s NFL premiere on YouTube wasn’t just an event of streams, it was a declaration. Attracting more than 17 million international viewers, YouTube showed that it’s capable of standing side-by-side with Amazon in the live sports game, and perhaps even have the capability to surpass it. It seems like this isn’t merely about football, rather it’s about Google asserting its strength as more than an ads and search company. Sports broadcasting is among the final frontiers of digital hegemony, and YouTube just demonstrated that it can deliver really well into stock tailwinds.
The sustained $250 price target seems almost conservative, and Alphabet appears ready to play a much larger game. The reaction of the market to YouTube’s NFL success showcases the equilibrium between momentum and risk in the story of Alphabet. The huge viewership justifies YouTube’s scale and its capability to move beyond ads to premium, which is a highly interactive content. That sort of cultural significance keeps Alphabet sticky to consumers and advertisers both.
On the other hand, regulatory storm clouds are heavy, where a €2.95 billion EU fine and antitrust scrutiny would be a burden on investor sentiment. Yet, if one puts on top solid fundamentals with fresh sources of revenue such as sports broadcasting, the longer-term story indicates that Alphabet has the potential for growth, even as it deals with more stringent regulation.
YouTube’s NFL triumph demonstrates that Alphabet can dominate live streaming, as it dominated digital video. Alphabet’s innovation machine is robust, yet regulatory wars are real as well. The stock is the long game, not a short race, and investors will have to balance opportunities for growth against regulatory risks. Sure, regulators are paying attention, but innovation has always been Alphabet’s strongest defense. For investors, the decision is whether to view this as yet another headline or evidence that Alphabet is constructing the type of diversified empire that continues to win, on the field, on the Internet, and in the marketplace.
