How to Buy Google Stock – The Internet's Cash Cow
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At least once a day, we all use the Google search engine to look for answers. Google knows it all, whether they are soul-searching questions, data, or information. 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 much of our time, but the company offers much more than the search engine. It specializes in Internet-related services and products.
Its parent company is Alphabet Inc., considered one of the top technology companies in the world and one of the best stocks. The company is like no other and has grown by leaps and bounds. It 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. 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.
Want to invest in Google stock? Here are the steps you must follow.
In this article
Step 1: Finding a broker that offers Google stock
The first step to buying 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 you invest in stocks, but you must understand their services before committing to one. Here are the top platforms you should consider.
- Commission free stock trading.
- No account minimum.
- Trade stocks, options, ETFs, and more.
- First stock free.
Stash
Stash is the right trading platform for beginners. It will allow you to build a strong portfolio easily and not take more than a few minutes to create an account. Through Stash, you can buy mutual funds, stocks, and ETFs. You can choose from two different plans, and the basic plan starts at $3. You get a $1,000 life insurance policy and a debit card for the basic plan. For $9, you will get access to everything, including the monthly market insights report. Stash also offers fractional shares, so buy a part if you do not have enough funds to buy Google stock.
Pros and cons
Pros
- Ideal for beginners
- Begin investing with just $3
- Offers fractional shares
Cons
- Not for experienced investors
M1 Finance
M1 Finance is ideal for those who want to buy stocks and hold them 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 or 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.
Pros and cons
Pros
- Fractional shares
- Commission-free trades
- Ideal for long-term investors
Cons
- Not good for beginners
- No mutual funds
Step 2: Research Google
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 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, Google Cloud, Google Photos, Google Pixel smartphones, Google Home smart speaker, Google Wifi wireless router and much more.
The company has dominated the tech industry with new product launches, partnerships, and deals. It is listed on NASDAQ under the ticker GOOGL.
Google price history
Google (GOOG) 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 the investment would be worth a whopping $46,896 at the stock's trading share price of $2,131.68 on June 13, 2022.
Google shareholders agreed to a 20:1 stock split in 2022. This means for every one share, shareholders received 19 additional shares. If you held the stock until 2023, you would have 440 shares today worth $62,383.
Google dividend information
Despite its robust cash balance, Google has never paid shareholders cash dividends. However, it returned $31.13 billion to investors in 2020, $50 billion in 2021, and $60 billion in 2022, close to 30% of the profits through cash buybacks. This means the company has a lot of cash to expand its business operations while rewarding investors.
- Commission free stock trading.
- No account minimum.
- Trade stocks, options, ETFs, and more.
- First stock free.
Best features of Google Stock
Strong fundamentals
Alphabet Inc. is known for beating consensus estimates for its earnings, so the stock could soar higher. Not all companies can beat estimates year after year, but Alphabet has been able to do so in most cases. However, in the past year, Alphabet missed earnings estimates twice but has shown revenue growth. The company reported a revenue of $305.63 billion in 2023, its highest value to date. Despite missing estimates and a drop in revenue, investors haven’t lost faith in the company’s growth potential.
Massive growth potential
Several analysts have given it the potential to hit $300 a share by 2025. Although the markets are currently in free fall, stocks always rise in the long term.
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 more than 85% of the global market share. It is a cash cow and continues to be so.
Artificial Intelligence is the future
Amid the race toward AI, Google could be a solid contender. At a conference last year, the company demonstrated how it uses AI for Google Cloud, Google Maps, voice-based search, and virtual reality. While companies are still working towards AI domination, Google could be a strong player in the industry.
Physical entry into the retail market
The company opened its first brick-and-mortar store in Chelsea, 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 can browse the products or buy online and pick them up from the store.
Diverse product offerings
The search engine is only a part of the company's product offering. 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, and voice searches to Artificial intelligence. There is no end to what Google can offer you. Whether an organization or an individual, Google has something you cannot live without.
Ad revenues
Google generates massive ad revenue, and as businesses go back to spending money on promoting their operations, the revenue will only rise. The advertising growth will exceed 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.
Cloud computing
Google is always looking for new ways to enhance the cloud computing market. It collaborated with AT&T to unveil end-to-end edge solutions, including on-premise solutions for entertainment, retail, manufacturing, and healthcare businesses. This collaboration will enhance Cloud computing technologies and 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 consumers' transition towards media consumption. This transition was accelerated during the pandemic and hit new highs. More viewers are watching YouTube and paying for it. YouTube ad revenue was $31.51 billion in 2023. YouTube Premium and YouTube Music have more than 100 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.
Related: How to Make Money on YouTube
Step 3: Open an account & buy Google shares
You can purchase Google stock through one of the online brokerage firms 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. In 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 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 immediately. Use the ticker to place an order.
- Commission free stock trading.
- No account minimum.
- Trade stocks, options, ETFs, and more.
- First stock free.
FAQs
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.
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
Google stock represents an excellent opportunity for those interested in high-growth stock trading. Renowned for its strong industry reputation and consistent growth trajectory, Google has established itself as a key player in the stock market. For stock traders, the current price of Google stock is a significant indicator of its market strength and potential for continued growth. The notion that investing in Google stock will likely yield profits, regardless of the investment timing, makes it a sought-after asset in stock trading circles. It's considered a strategic acquisition to buy and hold for the long haul.
Investors looking to engage in stock trading can access Google shares through online brokerage accounts like Stash, M1 Finance, and Wealthfront. However, it's important to remember that the stock market, including Google's stock price, is subject to volatility. This fluctuation, characterized by periodic upswings and downswings, is a normal part of stock market behavior. As such, traders should evaluate their risk tolerance and stay informed about market trends. This cautious approach will assist them in making well-informed decisions, ensuring a strategic and potentially profitable investment in Google stock amidst the ever-changing landscape of stock trading.
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Editor
Vandita Jadeja is a financial writer and editor at Joywallet. She loves to read and write about money and brings a decade of experience from the financial industry.
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