Google Stock Google’s search engine is a major player in the market and determines how information is made, accessed, and shared online. However, the company is more than just an engine for searching.
In the top five companies worldwide by market value, Google — or the subsidiary Alphabet Inc. Alphabet, Inc. -is a sought-after and appealing investment option for many. Its Mountain View, California-based company announced a highly-anticipated IPO in August 2004. On the IPO day, shares began trading at $85 and ended at around $100.
Since then, Google’s stock price has increased by over 3000 percent.
For the year that ended 1 April 2022, Google’s stock price increased by around 31%. Google shares trading at a price in the vicinity of $2,500.
The company announced that in February 2022, Alphabet announced it would announce a 20:1 split of its stock. After the split is put into force in July, the company’s price will be much more affordable to investors, probably around $125, based on an average share price of $2,500.
But is it possible for Google to continue to grow? Does it merit an appearance on your list of investments? Here’s how you can find out.
Google (Alphabet) fundamentals of stock
Before we go into more detail, Let’s define something. When we talk of the possibility of investing into Google when we talk about investing in Google, it refers to the investment within Google’s subsidiary company called Alphabet.
Alphabet is a holding firm comprising multiple subsidiaries but can draw the bulk of its revenues directly from Google, specifically Google’s advertising and search services. In addition, Alphabet is the parent company of autonomous-driving company Waymo, Life-science research firm Verily and artificial intelligence firm DeepMind, and many more.
In addition, when we talk about investing in Alphabet, this could refer to purchasing GOOGL, Google, and GOOG, or even both. Alphabet offers two classes of stocks- or, technically, three. GOOGL and GOOGL represent the ticker symbol for the two major stocks accessible to investors. Both are traded on the Nasdaq exchange.
Here’s a quick breakdown:
- GOOGLE is an A-class common stock. This kind of stock has the right to vote for shareholders.
- Google is a capital stock of class C that does not come with voting rights. It is the main difference.
- The third edition of Alphabet stock, called the class B type, comes with increased voting rights. The shares are owned by Google CEOs, founders, or other internal employees. The Class B share isn’t offered to investors who are retail.
The prices of both stocks generally follow similar trends; however, due to the votes, GOOGL may be slightly more expensive at any moment.
Now, let’s look at the basics.
In 1998, two Stanford University graduate students, Larry Page and Sergey Brin, created Google. Since then, Google has been the leading web search engine, with nearly 90 percent of the market share.
Although Google may be most well known for its Google search engine, however, the primary foundation that drives the company’s business today is online advertising, which generates more than 80 percent of its revenues. In helping to develop Google’s Android operating system, Google has also taken a substantial part in mobile ads and applications.
A fast-growing moneymaker for Google is its cloud computing operations, which spans the gamut from various cloud applications — like Gmail and Google Docs — to dozens of other artificial intelligence, machine learning, and data-storage tools.
It isn’t necessary to have a computer science degree to invest in Alphabet; however, at minimum, you must conduct your research and learn more about its business processes before placing your money in the bank.
GOOGL’s latest financial results
Alphabet’s most recent earnings report for its fourth quarter of the fiscal year 2021 showed impressive growth on top of an already impressive year. Alphabet reported an increase of 41% in revenue year-over-year. The company’s quarterly revenues of $75.3 billion were higher than expected, as did its earnings per share at $30.69.
YouTube advertising revenue is the only one in which Alphabet could not meet its expectations because of the rise of its rival TikTok. Regarding cloud computing, Alphabet reported a significant growth in its revenue year-over-year of 45 percent, which amounted to $5.54 billion. Despite supply chain issues related to pandemics, Google’s Pixel smartphone set an all-time sales record in the eyes of Alphabet Chairman Sundar Pichai.
How to purchase Google stocks through an account at a brokerage
Apart from retirement accounts such as 401(k)s or IRAs, most investors now hold stocks in brokerage accounts. These investment accounts often called “online trading platform,” have revolutionized how we invest. To be honest, it allows ordinary people to purchase and sell stocks on their computers or smartphones, usually with low or no commission costs.
Before registering with an internet-based broker, novices must ensure their finances are in order. This means establishing emergency funds, paying off excessively high-interest loans (like cards and credit cards), and utilizing any retirement benefits offered by their employers. After that’s done, then investors can start to create an overall portfolio that’s not too dependent on a single stock.
