Google (GOOGL) Trims Its Smart TV Budget to Focus on YouTube
Tech giant Google (GOOGL) is reducing its investment in its smart TV division by cutting the budget for Google TV and Android TV by 10% and trimming staff, according to The Information. It is worth noting that these teams help power smart TV platforms used by brands such as Sony, Hisense, and TCL, as well as support Google's own TV device. The annual budget for this division was under $500 million, and up to a quarter of its 300-person team may have been affected by layoffs. However, Google plans to grow the team again in countries like India. Despite the cuts, the company says it's still investing in Google TV and highlighted that there are over 270 million Android TV devices in use.
Confident Investing Starts Here:
This shift is part of a bigger change within Google, as it focuses more on YouTube, which has become the most-watched streaming service in the U.S. In fact, viewers now spend 67% more time on YouTube than on Netflix (NFLX), according to Nielsen. As a result, Google's leadership is putting more support into growing YouTube's ad and subscription revenue, which reached over $50 billion in the 12 months ending September 2024. In addition, YouTube and Google Cloud together even passed a $110 billion annual run rate during the same period, which beat the company's goal for 2024.
With Google pulling back, competitors like Roku (ROKU), Amazon's Fire TV (AMZN), and The Trade Desk (TTD) are looking to grow their share of the connected TV market. At the same time, YouTube is making leadership changes, which include hiring Disney (DIS) executive Justin Connolly while also considering successors to top roles like Chief Business Officer. As YouTube's subscription services continue to grow, Google may shift even more resources away from smart TVs and into streaming.
Is Google Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 29 Buys and nine Holds assigned in the past three months. Furthermore, the average GOOGL price target of $199.11 per share implies 20.6% upside potential from current levels.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Newsweek
36 minutes ago
- Newsweek
Canada and US Trade Talks Resume After Digital Tax Reversal
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Canada and the United States have resumed trade negotiations after Canadian Prime Minister Mark Carney agreed to rescind the country's digital services tax on U.S. technology companies. The development follows President Donald Trump's announcement on Friday that he was suspending all trade talks with Canada "effective immediately" over the tax policy. Why It Matters Trump's Friday announcement followed Canada's confirmation that it would proceed with its digital services tax on technology giants, most of which are U.S.-based, despite a previous G7 agreement where the Trump administration had agreed to drop a retaliatory tax proposal from congressional consideration. Canada's quick reversal signals the high stakes involved in maintaining trade relationships with the United States, particularly given the countries' deeply integrated economies. What To Know Carney's office confirmed on Sunday that both leaders have agreed to restart negotiations after Canada committed to abandoning the 3 percent levy targeting major U.S. tech giants including Amazon, Google, Meta, Uber, and Airbnb. The tax was scheduled to take effect Monday and would have applied retroactively, creating an estimated $2 billion bill for American companies. The conflict escalated rapidly after Canada's Finance Department confirmed Friday that companies would still be required to make their first digital tax payments Monday, despite ongoing negotiations. The tax targeted revenue generated from Canadian users rather than corporate profits, making it particularly burdensome for technology companies operating internationally. Trump's response was immediate and severe. He announced the suspension of all trade discussions "effective immediately" and threatened to impose new tariffs on Canadian goods within seven days. The president criticized Canada as "a very difficult Country to TRADE with" and described the digital tax as "a direct and blatant attack on our Country." The dispute has unfolded against already strained U.S.-Canada relations. Since taking office in January, Trump has repeatedly criticized Canada and suggested it should become the 51st U.S. state. These tensions contributed to the political environment that led to Justin Trudeau's resignation and Mark Carney's subsequent election on an anti-Trump platform. Canada's decision to rescind the tax came "in anticipation" of reaching a broader trade agreement, according to government officials. What People Are Saying Canadian Prime Minister Mark Carney said Friday: Canada will "continue to conduct these complex negotiations in the best interests of Canadians. It's a negotiation." President Donald Trump previously said in the Oval Office that he expected Canada to lift the digital services tax: "Economically we have such power over Canada. We'd rather not use it. It's not going to work out well for Canada. They were foolish to do it." Canadian Prime Minister Mark Carney (R) greets U.S. President Donald Trump at the official welcome ceremony during the G7 Leaders' Summit on June 16, 2025 in Kananaskis, Alberta. Canada is hosting this year's meeting... Canadian Prime Minister Mark Carney (R) greets U.S. President Donald Trump at the official welcome ceremony during the G7 Leaders' Summit on June 16, 2025 in Kananaskis, Alberta. Canada is hosting this year's meeting of the world's seven largest economies. MoreWhat Happens Next With negotiations resuming, both countries will likely focus on addressing broader trade issues beyond the digital services tax. The Trump administration has indicated expectations for additional Canadian concessions, particularly regarding agricultural tariffs that have been a longstanding source of friction. Reporting from the Associated Press contributed to this article.
Boston Globe
an hour ago
- Boston Globe
Canadian Prime Minister Carney says trade talks with US resume after Canada rescinded tech tax
Carney's office said Carney and Trump have agreed to resume negotiations. 'Today's announcement will support a resumption of negotiations toward the July 21, 2025, timeline set out at this month's G7 Leaders' Summit in Kananaskis,' Carney said in a statement. Carney visited Trump in May at the White House, where he was polite but firm. Trump traveled to Canada for the G7 summit in Alberta, where Carney said that Canada and the U.S. had set a 30-day deadline for trade talks. Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up Trump, in a post on his social media network last Friday, said Canada had informed the U.S. that it was sticking to its plan to impose the digital services tax, which applies to Canadian and foreign businesses that engage with online users in Canada. Advertisement The digital services tax was due to hit companies including Amazon, Google, Meta, Uber and Airbnb with a 3% levy on revenue from Canadian users. It would have applied retroactively, leaving U.S. companies with a $2 billion U.S. bill due at the end of the month. Trump's announcement Friday was the latest swerve in the trade war he's launched since taking office for a second term in January. Progress with Canada has been a roller coaster, starting with the U.S. president poking at the nation's northern neighbor and repeatedly suggesting it would be absorbed as a U.S. state. Advertisement
Yahoo
2 hours ago
- Yahoo
Down 30%, Should You Buy the Dip on IonQ?
Quantum computing soared following the release of Google's Willow quantum chip in December. IonQ is still deeply unprofitable, but the company expects its revenue to double this year. The company is building momentum following a deal with EPB and multiple acquisitions. 10 stocks we like better than IonQ › Quantum computing stocks captivated investors like few other sectors in recent months. Ever since Alphabet's Google announced its state-of-the-art quantum chip, Willow, in December, quantum computing stocks have soared. Many investors see them as the next major technology on the horizon, following in the footsteps of artificial intelligence (AI). One of the biggest players in AI is IonQ (NYSE: IONQ), a developer and seller of quantum computers. The company sells hardware, software, and services, making its quantum computers available through providers like Amazon Web Services, Microsoft Azure, and Google Cloud, a business model known as quantum-computing-as-a-service (QCaaS). IonQ differentiates itself from other publicly traded quantum computing stocks like Rigetti Computing, D-Wave Quantum, and Quantum Computing because of its trapped-ion technology, which uses atoms suspended in a vacuum and manipulated with lasers. Right now is also an excellent time to consider buying IonQ stock, as it's down 30% from its peak late last year, and it's pulled back by nearly as much after a surge in late May, following an interview in Barron's with CEO Niccolo de Masi, who said the company aimed to be the "Nvidia of quantum computing." With IonQ stock having cooled off a bit in June, let's take a closer look at what the stock has to offer. Despite a market cap over $10 billion, IonQ is still essentially a development-stage company, as it brought in just $7.6 million in revenue in the first quarter. However, that was down slightly from the year before, showing the company is not delivering the kind of growth you might expect from a high-priced stock like IonQ. IonQ is also deeply unprofitable, with the company posting a generally accepted accounting principles (GAAP) operating loss of $75.7 million in the period, or 10 times what it brought in revenue. It does expect revenue growth to accelerate over the remainder of the year, forecasting $75 million to $95 million in revenue for the full year. That forecast, which includes some small acquisitions, targets revenue roughly doubling from $43.1 million last year. There are other signs the company is making progress. It signed a $22 million deal with EPB of Chattanooga, an energy and telecom company, and it's waiting to close on its acquisition of Lightsynq Technologies, a maker of quantum interconnects to bridge the gap to large-scale quantum computers. IonQ also took part in Nvidia's first-ever Quantum Day, where it demonstrated quantum-accelerated computation and commercially relevant applications, further evidence that quantum computing could is progressing toward mainstream. Additionally, Nvidia CEO Jensen Huang said in June that the technology is at an inflection point, comments that came just months after he said that "very useful" quantum computers could be decades away. There's no question that there's a ton of uncertainty around quantum computing stocks right now. Valuations have been inflated by the attention placed on the sector following Google's announcement about Willow last December. Based on IonQ's guidance, the company still trades at a price-to-sales ratio of more than 100 using its 2025 forecast. However, there is real momentum in the industry, and analysts expect IonQ's revenue to double both this year and next. Given its leadership in quantum computing, business momentum, and expected revenue growth, opening a small position in the stock seems reasonable for risk-tolerant investors. Keep in mind that the risk with IonQ remains high at the current valuation, and the stock could fall a long way if its performance comes up short in the coming quarters. Before you buy stock in IonQ, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and IonQ wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $966,931!* Now, it's worth noting Stock Advisor's total average return is 1,062% — a market-crushing outperformance compared to 177% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jeremy Bowman has positions in Amazon and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Down 30%, Should You Buy the Dip on IonQ? was originally published by The Motley Fool Sign in to access your portfolio
