In a note out this morning, Justin Post and his team at Bank of America Merrill Lynch say that YouTube, which is owned by Google, is worth more than $70 billion on its own.
According to Bloomberg data, only 66 companies in the S&P 500 have a higher market value.
If you raise that to the potential $80 billon to $90 billion that Post goes on to say is possible, only 59 and 55 companies in the S&P 500 are valued at higher levels, respectively.?
To put this in perspective, Time Warner and Twenty-First Century Fox each have a market cap of just under $70 billion. BlackRock, Hewlett-Packard, Ford, Dow Chemical and General Motors also fall below the $70 billion mark.?
The BofAML analysts estimate that YouTube will add three points of growth to Google’s website revenues in 2015 and should continue to offset a deceleration in search as it grows in scale. Based on BofAML’s projections for growth in the online video ad market, the analysts expect YouTube revenues to grow 34 percent to $8.2 billion in 2015, and to $13 billion by 2017, which would mean revenues more than doubling in the period between 2014 and 2017.?
An $80bn valuation for YouTube, incidentally, would equate to ?more than a fifth of Google’s $370 billion market value.
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