Today, we are going to talk about Google. For an average Internet user, Google is primarily a search engine. We use it to find useful information, order groceries, navigate unfamiliar cities and listen to our favorite music. However, Internet search is just one, albeit the key, of the company's many areas of activity. Let’s get to know Google, find out about all its opportunities and achievements, and discuss whether its shares are an attractive investment instrument.
About Google
Google Inc. is an American IT corporation that is a subsidiary of the holding company Alphabet Inc. The company’s headquarters are in Mountain View, California.
Founded in 1998, Google became a subsidiary of Alphabet in 2015.
Google specializes in software development, cloud computing, and advertising technology. The corporation’s leading projects are the Android operating system and Google search engine.
The company is also deeply interested in projects in the field of venture programs, helping the community of programmers, and supporting social services.
Google Inc. has over 50 development centers worldwide. Its most famous subsidiaries are YouTube, Google Voicе, AdMob, FeedBurner, Google Foundation, and On2 Technologies.
Google shares
The company held its IPO in 2004 when Google Inc. offered 19.6 million shares at a price of $85 per share. The IPO went well and the company sold shares worth more than $1.60 billion.
In 2015, Google was reorganized as a wholly-owned subsidiary of Alphabet Inc. Many investors were confused because Google became Alphabet in the stock market and its shares were divided into GOOGL and GOOG. However, traders soon figured it out. Now you will get the answer too.
The holders of Class A shares (GOOGL) carry one vote per share. GOOGL shares are in free float. Meanwhile, holders of Class C shares (GOOG) do not have voting rights. GOOG shares are mainly used to reward the best employees in the company or to pay for buying startups.
Today, GOOG and GOOGL shares are listed on the NASDAQ stock exchange. They are constituents of the S&P 500, NASDAQ 100, S&P 100, and many other indices. The fact that they are included in popular US stock market indicators makes them attractive investment instruments.
At the moment of writing, the market capitalization of Alphabet Inc. was $1,889,221,083,136.
There is also a third type of Google shares - Class B. They do not trade in the market. Each Class B share gets 10 votes. All the Class B shares are owned by the company’s founders, Larry Page and Sergey Brin, and Eric Schmidt, the former CEO. Together they have more voting rights to control the price of Google shares in the stock market.
How to buy Google shares and how much are they worth?
If you want to purchase Google shares as an individual, you should find a reliable broker that has access to the NASDAQ stock exchange. If you want to invest in Google right now, go to the InstaForex website. It has all the necessary information about the rules of safe investment in the company’s shares. In the Forex analysis and reviews section of the website, you will find out what drives the price of Google shares.
The chart below reflects the current price of Google shares. As you can see, any trader can purchase them at $2845.01 per unit.
The price of Google shares greatly depends on the inflow of capital into the US stock market, especially in tech stock.
Dividends
Google has not paid dividends to shareholders since 2006, and Alphabet Inc. since 2015.
Instead, the company decided to spend all profits on expanding the business and acquiring other IT firms. This fact makes Google shares less attractive compared with other stock market instruments.
The profit of traders investing in GOOGL and GOOG depends on changes in the share price within a trading session in the stock market.
Summary
Nowadays, Google Inc. is developing steadily enough to go through any turmoil. Over the past decade, the company's shares have shown an extremely positive dynamic. This is what makes the corporation attractive for investment and trading.
Google is properly protected from aggressive takeovers and remains an absolute monopoly in some areas of its activity. The tech giant strives to present its products and services as the most affordable option.