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At least once a day, all of us use the Google search engine to look for answers. Whether they are soul-searching questions, data, or information, Google knows it all. I may have used it a few times while working on this piece! It has answers to every question you may have. A stable in our digital lives, it is hard to imagine a life without it. It dominates a lot of our time but the company offers a lot more than the search engine. It specializes in internet-related services and products.
Its parent company is Alphabet Inc. and the company is considered as one of the top technology companies in the world and best stocks. The company is like no other and has grown by leaps and bounds over the years. The company is included in the FAAMG, or the Big Five namely, Facebook, Amazon, Apple, Microsoft, and Google.
Google stock has constantly grown over the years and made investors wealthier. It is trading at an all-time high of $2,568 and is up 225% over the last five years. There are two types of Google stock available to the public. One is Class A shares that come with voting rights and Class C shares that do not. With this, the company has been able to be a public company on the stock market but also retain the agency.
Want to invest in Google stock? Here are the steps you must follow.
Step 1: Finding a broker that offers Google stock
The first step to buy Alphabet stock is to look for an online brokerage that offers the stock and this process will not take longer than a few minutes. Many investment platforms help invest in stocks but you must understand their services before committing to one. Here are the top platforms you should consider.
Stash is the right trading platform for beginners. It will allow you to build a strong portfolio with ease and will not take more than a few minutes to create an account. Through Stash, you can buy mutual funds, stocks, and ETFs. There are different plans you can choose from and the basic plan starts at $1. For the basic plan, you get a $1,000 life insurance policy and a debit card in addition to the basic account. A step ahead is the $3 plan where you also get a retirement account and for $9, you will get access to everything including the monthly market insights report. Stash also offers fractional shares so if you do not have enough funds to buy Google stock, buy a part of it.
M1 Finance is ideal for those who want to buy stocks and hold for the long term. You can customize the portfolio and invest in ETFs, mutual funds, and stocks based on your goals. M1 Finance is not for those who want to buy and sell and neither for newbies. You will not find much investment advice to make decisions. M1 Finance offers individual accounts, joint taxable accounts, retirement accounts, and trusts. The minimum investment required for a taxable account is $100 and for retirement accounts is $500. M1 Finance offers fractional shares and the purchases are commission-free.
Google is a technology company founded in 1996 by Sergey Brin and Larry Page. They were students at Stanford University in California. Its services include Internet-related products, a search engine, online advertising technologies, hardware and software, and cloud computing. Some of its most popular owned websites include YouTube and Blogger. Besides running the most successful search engine in the world, the company has products including Gmail, Google Docs, Google Drive, Google Maps, Google Calendar, Google Podcasts, Good Earth, Google Photos, Google Pixel smartphones, Google Home smart speaker, Google Wifi wireless router and much more.
The company has been dominating the tech industry with smart launches, partnerships, and mergers. It is listed on NASDAQ with ticker GOOGL.
Google price history
Google has grown tremendously over the years and would have made you wealthy if you had invested in the IPO. The stock debuted on August 19, 2004, at $85 at a valuation of $23 billion. The company split its stock two-to-one in 2014 and recognized it under Alphabet Inc. in 2015. If you had invested $1,000 in Google IPO, you would have received 11 shares. After the stock split in 2015, there would be 22 shares and today the investment would be worth a whopping $56,496 at the share price of $2,568. As of August 26, 2021, the current price is $2,828.81.
Google dividend information
Google has never paid cash dividends to the shareholders despite having a robust cash balance. But it managed to return $9.1 billion to investors in 2018, which is close to 30% of the profits through cash buybacks.
Best features of Google Stock
Alphabet Inc is known for beating consensus estimates for its earnings and as it reports Q2 earnings for 2021, the stock could soar higher. Not all companies can beat estimates year after year but Alphabet has been able to do so for the prior four quarters. The most popular search engine in the world has grown its revenue by 19% in 2020 and by 34% in 2021 Q1 as compared to the same quarter last year. The stock is up 45% since the end of 2020 and has left investors wondering how high it could go.
Massive growth potential
Several analysts have given it the potential to hit $5,000 a share by 2025 and it looks possible with Google. The current upward streak shows no signs of stopping and could only take the stock to new highs.
The search engine is a cash cow
Whether the ad revenue increases or declines, it will not affect the growth of the world’s go-to search engine. Google has made a strong place for itself as the biggest search engine in the world and has about 92% of the global market share. It is a cash cow and continues to be so.
Physical entry into the retail market
The company has opened its first brick-and-mortar store in Chelsea in New York. This store is its commitment to the retail industry and will bring the company right in front of the customers with the prospects of growing bigger over the years. Through the store, customers will be able to browse through the products or buy online and pick them up from the store.
Diverse product offerings
The search engine is only a part of the product offering of the company. It recently made its collaboration tool, Workspace available to everyone. It has a few new features and the company is also said to be working on new methods of classifying skin tones to make products more inclusive. It has everything from self-driving cars, mobile phones, voice searches to Artificial intelligence. There is no end to what Google can offer you. Whether it is an organization or an individual, Google has something you cannot live without.
Google generates massive ad revenue and as businesses go back to spending money on promoting their operations, the revenue is only going to rise. The advertising growth will exceed the expectations as companies put in everything to rank higher on Google. The company has seen broad-based growth in ad revenue and this trend does not look to be ending anytime soon. Strong earnings this year will push the stock higher.
Google is always looking at new ways to enhance the cloud computing market. It recently collaborated with AT & T to unveil end-to-end edge solutions. It includes on-premise solutions for businesses in different industries like entertainment, retail, manufacturing, and healthcare. This collaboration will enhance Cloud’s computing technologies and will enhance the adoption of Google Cloud services.
Strong revenue from YouTube
A major reason to own Google stock is YouTube which generates ad revenue and remains the epicenter of the transition of consumers towards media consumption. This transition was accelerated in the pandemic and hit new highs. More viewers are watching YouTube and paying for it. YouTube ad revenue increased to $6.9 billion in Q4 2020. It is a 46% gain year over year. The company has direct response ads on the platform and it is a new revenue stream. YouTube revenue grew by 49% in the first quarter of 2021 as compared to the previous year. YouTube Premium and YouTube Music have more than 30 million paid subscribers. Business owners and advertisers understand the need to shift to online video platforms and this is only going to rise in the coming years.
Through one of the online brokerage firms, you can purchase Google stock within minutes. Here is a complete guide to investing in Google through M1 Finance. Head to the M1 Finance website and click on Get Started.
Here you need to provide your email address and password. You will be asked to verify the email to begin. At the next stage, you will have to create a pie. You can choose any three or more stocks from the ones you see on the screen and your pie will be ready. It should be based on your goals and investment strategy.
Next, you need to provide an investment horizon. Choose between short, long, or average, and choose the type of investment account you want and fund it. Begin your investment journey after you link the bank account.
Once you have created the account, choose the price at which you want to buy the stock and the number of shares you want to own. You can choose between a limit order and a market order. The limit price is the price you set as a limit and the transaction will only be executed when the stock hits the limit price. On the other hand, the market price is the prevailing price and the transaction will be executed right away. Use the ticker to place an order.
How much were Google shares when the company first went public?
Google's stock price was $85 when it first went public in 2004 through an IPO.
How much does it cost to buy Google shares today?
As of closing on July 22, 2021, Google shares cost $2,568.
Does Google pay dividends?
Google has never paid any dividends.
What is the minimum number of Google shares that I can buy?
It is possible to purchase a fractional share of Google with the right online brokerage.
The bottom line
If you are looking for a high-growth stock, Google stock is the best. It enjoys an indisputable reputation in the industry and has grown over the years. One thing is certain - you will make money no matter when you invest in Google stock. It is one stock to buy and never sell.
Through online brokerage accounts like Stash, M1 Finance, and Wealthfront, you can purchase the stock. You must keep in mind that the market is volatile and it is natural for the stocks to show an upswing and downswing from time to time. Identify your risk appetite and then make an investment decision.
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