After YouTube announced a live and on-demand television subscription, called "YouTube TV," the "Fast Money" traders said Google parent and YouTube owner Alphabet is the stock to trade.
The new video service will cost $35 for a family plan of six accounts with up to 40 sports and entertainment networks and access to original content from YouTube Red.
Trader Dan Nathan said he likes Google's accelerated revenue growth because it will know how to monetize the service better than companies like Netflix who have seen growth in the streaming arena. Nathan said Alphabet could also buy Twitter in order to push out more of their content and bring audiences to their platform.
Trader Tim Seymour said he likes Alphabet because of the growing ad industry. Seymour said YouTube's 1 billion viewing hours per day and better tools for advertisers will make the subscription service more attractive to reach broad audiences.
The $35 price tag for YouTubeTV stops trader Steve Grasso from jumping on the stock. He likes Amazon and Netflix in the space. Grasso said the price is too high for consumers who want a combination of video streaming services or subscribe to the YouTube service in addition to cable.
Guy Adami is long CELG, EXAS, GDX, INTC. Adami's wife, Linda Snow, works at Merck.
Tim Seymour is long ABX, AAPL, APC, AVP, BAC, BBRY, C, CLF, CVX, DO, DVYE, EDC, EWN, EWZ, F, FB, FCX, FXI, GM, GOOGL, GE, INTC, LQD, MOS, MCD, MUR, OIH, PG, RACE, RAI, RH, RL, SINA, SQ,T, TWTR, VALE, VZ, XOM. short: EEM, SPY, XRT; Tim's firm is long ABX, BABA, BIDU, CBD, CLF, EEM, EWZ, F, KO, MCD, MPEL, NKE, PEP, PF, TCEHY, SAVE, SBUX, SINA, VALE, VIAB, WMT, WEN, X, YHOO, short EWG, HYG, IWM
Dan Nathan is Long SPY May put spread, XIV long March call spread, JNJ long APR puts
Steve Grasso's firm is long: CHK, CUBA, DIA, HES, ICE, KDUS, MFIN, MJNA, MSFT, NE, REGN, RIG, SPY, TITXF, WDR, WPX, WLL, ZNGA. GRASSO IS LONG: CHK, EEM, EVGN, GDX, KBH, MJNA, MON, MU, OLN, PFE, PHM, QCOM, SPY, T, TWTR. Grasso's children own: EFA, EFG, EWJ, IJR, SPY. NO SHORTS.