A new report released by veteran Wall Street analyst Michael Nathanson has revealed that YouTube is on track to surpass Disney’s revenue this year, positioning itself as the top global media powerhouse.
According to the report, the platform generated $54.2 billion in revenue in 2024 and is projected to claim the number-one spot by the end of 2025.
This surge, according to Nathanson is driven by its massive audience reach, which is twice the size of Disney’s and other media giants’ viewership.
Nathanson, a partner at MoffettNathanson, highlighted YouTube’s soaring valuation, stating:
“If YouTube were a standalone business, public comparisons suggest it would be worth between $475 billion and $550 billion—around 30% of Alphabet’s current valuation.”
He said, for context this valuation places YouTube in the same league as Netflix and Meta Platforms.
Despite his optimism about YouTube’s growth, Nathanson revised his 12-month price target for Alphabet’s shares down by $10, setting it at $210.
However, he maintained a “buy” rating on the stock, underscoring confidence in its long-term potential.
Nathanson noted that YouTube is still realising its full potential as an advertising platform in the living room space.
While the platform has surpassed mobile in TV-based viewing, advertising revenue still lags behind competitors. For instance, Pluto TV currently charges 26 cents per hour of viewing, whereas YouTube charges around 18 cents.
He argued that YouTube is under-monetising its engagement, stating: “Given YouTube’s scaled reach and data advantage over other AVOD/FAST platforms, it should be in a league of its own, ahead of competitors like Tubi, Roku Channel, and Pluto.”
Beyond advertising, Nathanson envisions YouTube as the ultimate home for all things video.
