This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Google Grapples With YouTube

Updated from 12:10 p.m.

Yahoo! (YHOO - Get Report), Time Warner's (TWX - Get Report) AOL and Microsoft's (MSFT - Get Report) MSN probably don't have to worry about YouTube's surging popularity quite yet.

Though the video-sharing site is gaining huge numbers of users, advertisers are still leery about associating themselves with YouTube's content, which can be racy, weird or of poor quality. That reluctance may change over time, particularly for companies looking to reach the young, hip audience that's attracted to YouTube, analysts and advertisers say.

"Will YouTube siphon dollars away from Google (GOOG - Get Report) and Yahoo!?" asks Martin Pyykkonnen, an analyst with Global Crown Capital, who rates both shares as overweight. "I don't see that right now."

Analysts expect advertisers to stick with the sites they know, such as the New York Times (NYT) and Disney's (DIS) ESPN. They also will avail themselves of whatever video advertising services Google eventually puts up.

Wall Street knows that YouTube will eventually have to sell more advertising without alienating its core audience. There already is speculation among bloggers about whether a big media or Internet company will buy the site, which, like its rival MySpace, has yet to turn a profit. A YouTube spokeswoman didn't comment. In other media interviews, YouTube executives have stressed that they are looking to build their service and aren't focusing on a short-term payout.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
GOOG $682.40 0.00%
MSFT $50.50 0.00%
NWS $11.27 0.00%
TWX $62.26 0.00%
VIA $36.63 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs