The U.S. Supreme Court's decision to uphold a law that could potentially ban TikTok in the United States has generated significant interest in Alphabet's YouTube as a potential beneficiary. Analysts at Morgan Stanley have pointed out that YouTube Shorts could see a surge in user engagement and advertising dollars as TikTok's 170 million U.S. users may seek alternative platforms. This shift could allow YouTube to capture a portion of TikTok's substantial ad revenue and user engagement. Alphabet has been proactive in making YouTube Shorts more attractive to TikTok creators and users by extending video lengths and hosting creator boot camps. However, the monetization rate for YouTube Shorts remains lower than traditional YouTube content, which may limit the immediate financial impact for Alphabet.
The Direxion Daily GOOGL Bull 1.5X Shares ETF (GGLL) rose 2.97% to $48.52 at 5:00 PM on Friday, January 17.