How to Invest in Google Stock GOOGGOOGL The Motley Fool
It occupies about 7% of Nasdaq 100 funds and 4% of S&P 500 funds. If you’ve seen large increases in value, you may want to meet with a tax professional before selling your Google stock. They can help you strategize ways to minimize any capital gains taxes you may incur.
How To Buy Google Stock
You must check out a brokerage’s trading app or platform to assess its features, order types, charting package, and trading tools before choosing it. The main difference between GOOGL and GOOG is GOOGL shares have voting rights while GOOG doesn’t. Alphabet’s Class A stocks (GOOGL) come with voting rights while the Class C stocks (GOOG) do not. Because of this difference, GOOG tends to trade at a slight discount compared to GOOGL. Commission-free trading, which many online brokers that trade in US shares offer, can make a big difference. Alphabet Inc. was created in 2015 by a restructuring of the Google company and now stands as the parent of Google LLC and its numerous subsidiaries, including Fitbit.
What Analysts Say About GOOG Stock
After you have decided on the best place to buy Google stock, it’s very important to evaluate their stock before you invest, so you truly understand the risk and upside. Watch the video below for more details transferring money into your new investment account. We believe everyone should be able to make financial decisions with confidence. Among the highlights, Google Cloud revenue increased by 34% to $15.2 billion. This was driven by growth in Google Cloud Platforms, AI infrastructure, and generative AI solutions.
A cost-effective, tax-efficient, and less risky way of investing in Google is through Index Funds and ETFs. Index Funds are securities that track the performance of an underlying security. Google stocks are part of many indices, including the S&P 500 and NASDAQ 100.
- While GOOG stock has been in an uptrend, it’s likely that the positive momentum will sustain as Alphabet makes big investments for growth acceleration.
- If you’ve seen large increases in value, you may want to meet with a tax professional before selling your Google stock.
- However, Google stock has returned more than 350% over the past 10 years.
- Further, with an optimistic growth outlook, there are reasons to remain bullish.
- A solid method to gauge how your investment in Google measures up to the rest of the market is by comparing its performance to that of a benchmark index, such as the S&P 500.
However, a trading platform offers more transparency, flexibility, and multiple order types. Google stocks have experienced rapid growth and performed well since its IPO. For example, if you invested $1,000 on the IPO day and bought 11.76 shares, your investment would have doubled to 23.52 in 2014. Today, at approximately $136 per share, the $1,000 investment would be worth $63,974.40. These stocks are only for the company’s founders and are not publicly traded. The decision on which to buy depends on the investor’s goals.
If the analysis of the stock predicts lower long-term prices, you can sell to reduce risks. A trading platform is a software application that connects a trader with the brokerage. It is usually a desktop, web, or mobile app for placing orders online.
You can trade index funds and ETFs from your brokerage account like you do actual stocks. Economic moat is a term used to describe the ability of a business buy google stock to outshine or outperform its competitors. Experts believe that Google has built a deep moat around its enterprise. The company’s expansion to other areas will also strengthen its market share.
Step 3: Research the company
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In reality, GOOG and GOOGL often trade for just around the same price. Since its beginning 24 years ago, Google has built its reputation on its superior search engine, far eclipsing its rivals, and remains the near-monopoly search engine in most markets. That said, competition is getting stronger, and eventually, Google might lose its mojo as consumer tech products evolve. Besides looking at Google’s fundamentals, you can use technical analysis to evaluate the company and identify trading opportunities in price trends and patterns seen on charts. After weighing both the expected risks and rewards, decide whether you want to buy Google stock and make it a part of your investment portfolio.
Our partners cannot pay us to guarantee favorable reviews of their products or services. Another important point to note is that for Q3, the company’s capital expenditure surged to $23.9 billion. With annual capex targeted in the range of $91 to $93 billion, growth is likely to be supported across business segments. Alphabet posted strong Q results, with quarterly revenue surpassing $100 billion for the first time.
Do Wall Street analysts think it’s a good time to buy Google stock
Your answers will help determine the type of stockbroker that you need. The shares of its parent company, Alphabet Inc., are traded as ‘GOOGL’ on major stock exchanges. In this article, we will explain how you can invest in Google stocks. Before you buy Google stock, it’s crucial to determine the amount you’re willing to invest. This shouldn’t just be a random figure; instead, it should be based on your financial goals, risk tolerance, and current financial situation. Thanks to various online brokers, access to the stock market has never been more accessible as well as affordable.
- Always analyze the quarterly financial statements released by Google.
- Since the company went public on August 19, 2004, Google has never paid a dividend to its shareholders.
- With annual capex targeted in the range of $91 to $93 billion, growth is likely to be supported across business segments.
- This method allows you to start small — because you can buy a fraction of a share that might otherwise be unable to afford — and build your investment as you wish.
- From a valuation perspective, GOOG stock trades at a forward price-earnings ratio of 27.
You can do additional valuation analysis on GOOGL’s stock here. Purchase GOOGL stock by opening an account with eToro today. Here is a list of our partners andhere’s how we make money.
That gave it a 3.1% total weighting to Alphabet, making it the fund’s fourth-largest holding. Even with a stock like Google, you don’t want to set autopilot and never revisit your investment. You’ll need to check in periodically to make sure it’s helping you make satisfactory progress toward reaching your goals.
Ensure you stay updated with the latest news, information, and financial statements from Google. Also, follow stock market news because external factors besides the company’s performance determine stock prices. Whether Google is a good stock to buy and is a suitable investment should be based on your risk tolerance, portfolio size, financial goals, and market experience. Also, note that past performance doesn’t guarantee future returns. Google, one of the most recognized brands in the world, is so synonymous with search that it’s evolved into a verb. But Google is far more than a search engine, and as part of its parent company, Alphabet, it has become one of the largest technology companies in the world.
Google’s self-titled search engine is the most-visited website on the planet, followed by their online video platform YouTube. Though a relatively young company, Google’s solid balance sheet, steady revenue, and profit growth give it a bona fide blue-chip stock status. As such, Google is among the safer stocks to buy in the long haul. Still, stocks are risky assets, so, as always, remember to do your own independent research and have sound risk management tools in place before entering the market.
Recently, Nvidia (NVDA) topped $5 trillion in market capitalization. This has been followed by a stellar set of Q numbers from Alphabet (GOOG) (GOOGL) and the stock is already higher by 48% for the year. The technology titan produced almost $34.5 billion of net income in the first quarter of 2025, up from more than $23.7 billion in the year-ago period. Explore opportunities for investing in Databricks, and the ins and outs of this tech company.
Where and how to buy Alphabet (GOOGL) shares? ›
Shares of Google’s parent company could make a good long-term investment, especially if profits continue rising at a rapid rate. Google’s parent company, Alphabet, initiated its first-ever dividend payment in April 2024. The technology giant set its quarterly rate at $0.20 per share. The next year, it raised its payment by 5% to $0.21 per share each quarter.
