In a Monday blog post, Alphabet Inc’s YouTube announced the launch of Shorts, a new short-form video service that will compete with TikTok and Facebook Inc’s Reels.
The new product is to allow users to record short mobile-friendly vertical videos and to add special effects and soundtracks from a music library.
Alphabet shares closed lower for a third consecutive trading session on NASDAQ on Monday. The stock inched down 0.09% ($1.44) to $1,519.28, after touching an intraday low at $1,515.89 and an intraday high at $1,563.00.
Shares of Alphabet Inc have risen 13.63% so far in 2020 compared with a 4.73% gain for the benchmark index, S&P 500 (SPX).
In 2019, Alphabet’s stock went up 29.10%, thus, it again outperformed the S&P 500, which registered a 28.88% gain.
The new service will be tested first in India during the upcoming several days, after which it will be introduced in more countries by the end of the year.
The news came just as Oracle Corp and ByteDance secure a deal, structured as a partnership, aimed to keep TikTok in the US market.
Analyst stock price forecast and recommendation
According to CNN Money, the 40 analysts, offering 12-month forecasts regarding Alphabet Inc’s stock price, have a median target of $1,755.00, with a high estimate of $2,000.00 and a low estimate of $1,237.00. The median estimate represents a 15.52% upside compared to the closing price of $1,519.28 on September 14th.
The same media also reported that at least 35 out of 43 surveyed investment analysts had rated Alphabet Inc’s stock as “Buy”, while 4 – as “Hold”.