Buy Alert: This High-Growth Canadian Media Stock Is on Sale!

In case you are looking to invest in an undervalued growth stock, BBTV Holdings might be a quality buy right now.

| More on:
edit Sale sign, value, discount

Image source: Getty Images

Alphabet’s (NASDAQ:GOOG)(NASDAQ:GOOGL) recent record-breaking earnings in the June quarter have not come as a major surprise to investors. The tech giant is a market leader in a rapidly expanding digital market industry, making it one of the largest companies in the world. 

Alternatively, Canadians looking to invest in a company that is part of the digital content creation space can look at BBTV Holdings (TSX:BBTV), one of YouTube’s largest enterprise partners. BBTV has solid long-term potential and is also trading at a cheap valuation right now.

One may wonder how a digital behemoth such as Google stacks up with a less familiar Canadian media and technology company such as BBTV. The answer is video property. BBTV owns the second-largest video property worldwide in terms of unique viewers following only Google.

To achieve this position globally, BBTV has been able to leverage high-tech solutions such as machine learning and big data to create innovative solutions for digital creators of all kinds. This has evidently paid off with BBTV’s recent announcement of 5.5 billion new monthly views on YouTube Shorts, one of YouTube’s fastest-growing verticals.

Focus on content creation is increasing

In the wake of rapid digitalization, the barriers to entry for creating online content have fallen dramatically. The rapid innovation in the sphere of mobile/handheld devices now enables several consumers to also become creators. Exacerbated by applications such as TikTok and Facebook’s Instagram, the requirements of a large production budget are no longer a necessity.

BBTV is a leader in creator monetization and the company supports this wave of prospective creators. A report from Morning Consulting shows that 86% of people ages 13 to 38 would like to be an influencer. 

To meet the needs of this rapidly growing industry, BBTV has built a suite of proprietary technologies to stay ahead of the curve. This includes tools such as VISO that leverage machine learning to help its users better understand and monetize their data. The industry-leading toolkit has enabled BBTV to generate a combined 40 billion views per month across its portfolio of creators and further engage with a global audience to enhance distribution and monetization. 

BBTV is not alone in this revolution. Recent funding rounds have seen other creator monetization companies successfully raise significant capital, implying a greater desire for ownership of online content. However, BBTV is certainly one of the most exciting names to watch with a track record of notable partnerships including the NBA and Sony Pictures. 

The Foolish takeaway

With a record-breaking quarter for You Tube, that generated over US$7 billion in sales in Q2, investors should now be watching closely for companies that stand to benefit from its performance such as BBTV. Furthermore, $BBTV has been given a price target of $18 by Bay Street analysts, more than three times what the company is currently trading at and leaving investors with a significant upside they can feel good about. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Facebook.

More on Tech Stocks

Online shopping
Tech Stocks

Up 42% from 52-Week Lows, Is Shopify Stock Still a Buy?

Shopify (TSX:SHOP) stock looks like one of Canada's best growth stocks. And right now, it looks like it's on sale,…

Read more »

A microchip in a circuit board powers artificial intelligence.
Tech Stocks

NVIDIA’s Historic Stock Split: Too Late to Invest?

Open Text Corp (TSX:OTEX) is a Canadian AI stock that uses NVIDIA (NVDA) chips.

Read more »

A microchip in a circuit board powers artificial intelligence.
Tech Stocks

“Goldilocks Conditions”: How AI Adoption Is Fuelling Stock Market Gains

Conditions look just right for the "Goldilocks Effect," and AI stocks are fuelling the way. But this could be the…

Read more »

Shopping and e-commerce
Tech Stocks

Why Shares of Shopify Are Powering Higher

After analysts issue upgrades, Shopify stock is climbing back from its double-digit decline after its first-quarter earnings release.

Read more »

TIMER SAYING TIME FOR ACTION
Tech Stocks

3 Reasons to Buy Shopify Stock Like There’s No Tomorrow 

Shopify stock fell 25% after reporting disappointing guidance. Should investors buy the dip and hold the stock for the long…

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Tech Stocks

3 Canadian Growth Stocks I’d Buy Under $30

These under $30 Canadian growth stocks are well-positioned to capitalize on mega trends such as e-commerce, the electrification of vehicles,…

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Tech Stocks

Why This Tech Stock Just Jumped 18%

This tech stock just saw shares surge after announcing it was being acquired, but more growth could still be in…

Read more »

Group of people network together with connected devices
Tech Stocks

Prediction: My 2 Top TSX Stocks to Beat the Market in 2024 and Beyond

Looking for stocks set to beat the market in 2024 and well beyond? Here are two tech stocks set to…

Read more »