In this structure, Google remains focused on its core internet business, while other business units are operated independently under the Alphabet umbrella.

In the US stock market, Alphabet offers two types of shares that attract investors, namely class C shares with the code GOOG and class A shares listed as GOOGL.

What Is Google Stock?

Basically, Google stock refers to the shares of Alphabet Inc., which is the parent company of Google and various other business units.

The stock is traded on the stock market under two main symbols, GOOG and GOOGL, and is a popular choice among global investors.

Also Read: American stock exchange hours Indonesian time

 

History and Background

Google was founded in 1998 by Larry Page and Sergey Brin with the mission of making the world’s information widely accessible.

In 2015, through a major reorganization, Google became a subsidiary of Alphabet Inc. and that allowed the company to expand its operations into various other technology sectors.

Alphabet’s Main Products and Services

Alphabet is known for its iconic products and services, such as Google Search, the world’s largest search engine, and YouTube, a video-sharing platform that dominates the global market.

Then, there is also Google Cloud, a provider of cloud computing services and other products, such as Gmail, Google Maps, and the Android operating system.

Latest Innovations

Alphabet continues to lead technological innovation, including the development of artificial intelligence such as Gemini AI, which has the potential to revolutionize various industries and strengthen the company’s position in the future.

Alphabet Stock Types: Difference between GOOG and GOOGL

Alphabet Inc. has two types of shares traded on the stock market, namely GOOGL (Class A) and GOOG (Class C). While both represent ownership in the same company, there are important differences in voting rights and characteristics.

GOOGL (Class A)

These shares provide voting rights to the holder, making them an attractive option for investors who want to be involved in corporate decision-making, such as board elections.

GOOG (Class C)

These shares do not have voting rights, making them more attractive to investors who are focused on the potential growth of the company, without regard to participation in corporate governance.

Class B Shares

Held exclusively by the founders and a few executives of the company. These shares provide 10 votes per share, but are not traded on the public market. The purpose is to maintain the founders’ majority control over the company.

GOOG vs. GOOGL Price Differences

GOOG and GOOGL typically have a small price difference. The main factor causing this difference is the market demand for the voting rights that GOOGL shares carry.

Because some investors value these voting rights, GOOGL often carries a slightly higher price than GOOG. However, this difference tends not to be significant in day-to-day trading.

Also Read: These are the 5 American Stocks with the Biggest Dividends, Must Check!

Google’s Journey and Stock Performance

Google’s stock, which is now part of Alphabet Inc., has had an extraordinary journey since it was first offered to the public. This development reflects the company’s rapid growth and its appeal to global investors.

Google IPO and Early Development

Google launched its initial public offering (IPO) in 2004 by releasing 22,500,000 shares, with an initial price of $85 per share. This IPO generated around $1,900,000,000.

Stock Split and Its Impact on Investment

• First split (2014): Conducted at a ratio of 1,998:1,000, where Class C shares (GOOG) were introduced as part of the restructuring, giving more shares to investors without increasing their voting rights. The move ensured that the founders’ control was maintained.
• Second split (2022): Executed at a 20:1 ratio, drastically lowering the price per share. This makes Alphabet shares more affordable to retail investors while increasing trading liquidity in the stock market.

Market Capitalization

As of March 21, 2023, Google’s stock market capitalization was recorded at US$1,300,000,000,000, equivalent to Indonesia’s Gross Domestic Product (GDP) in 2022.

With this figure, Google is in fourth place as the company with the largest market capitalization in the United States stock market.

This position also shows the company’s financial strength and global influence, making it an attractive investment for investors seeking long-term stability and sustainable growth potential.

Also Read: What is the S&P 500? A Complete Beginner’s Investment Guide!

Reasons to Invest in Alphabet Stock

 

Alphabet stock, as Google’s parent, offers a number of advantages that make it an attractive choice for investors, especially those looking for stability and long-term growth opportunities.

 

Market Dominance and User Base

Alphabet holds a dominant position in the online search market, with a share of over 90% via Google Search.

In addition, platforms such as YouTube, the Android operating system, and the Chrome browser strengthen its position as a technology giant with a massive global user base.

 

Long-Term Growth Potential

Alphabet is known to be resilient to economic turmoil, making it a relatively stable investment.

Innovation in technology, including the development of artificial intelligence (AI), provides attractive long-term growth prospects, with opportunities to expand its influence across sectors.

 

Stable Revenue Sources

With consistent revenue streams from digital advertising, cloud services, and other products, Alphabet has a solid business model.

The diversification of these revenue sources provides financial stability that supports its stock performance in the market.

 

How to Invest in Alphabet Stocks (GOOG and GOOGL)

Investing in Alphabet stocks, both GOOG and GOOGL, can be done by following simple steps through an investment platform. Here are some general guidelines and some tips for novice investors.

 

General Guidelines

• Choose an Investment Platform: Choose a trusted platform that suits your investment needs, such as an app or online broker that provides access to the US stock market.
• Register an Account: Register an account on the chosen platform by providing the personal and financial information required for verification.
• Deposit Funds: Once the account is active, deposit funds into your investment account, using the payment method provided by the platform.
• Purchase Stocks: Search for Alphabet (GOOG or GOOGL) stock on the platform and determine the number of shares you want to buy. Make a purchase according to the current market price.

Also Read: Top 7 American Blue Chip Stocks with the Largest Dividends

 

Tips for Beginner Investors

Before buying stocks, it is important to research Alphabet’s performance by looking at financial statements, stock price trends, and market analysis. Investment platforms often provide analytical tools that can help understand stock performance.

Investing in technology stocks, including Alphabet, can be risky due to market volatility and rapid changes in the technology industry. It is important to understand these risks and diversify your portfolio to minimize potential losses.

 

Conclusion

So, that was an interesting discussion about What is the Difference Between GOOG & GOOGL Stocks from Google? which you can read in full at the Crypto Academy at INDODAX Academy.

In conclusion, Alphabet stock offers very attractive potential for investors looking for long-term stability and growth opportunities.

The company’s dominance in the online search sector, YouTube, Android, and other technologies provides a strong foundation for future success.

In addition, the latest innovations, especially in artificial intelligence, strengthen its long-term growth prospects.

Alphabet also has a stable source of income, especially from advertising and cloud services, which supports its very large market capitalization.

For investors, choosing between GOOG and GOOGL stocks depends on preferences regarding voting rights, with GOOGL providing voting rights and GOOG focusing more on growth potential without voting rights.

For those interested in investing, it is very important to understand the differences between these two types of stocks and to conduct thorough and in-depth research and evaluation before making an investment decision.

For additional information, INDODAX will soon introduce new investment options that include stocks from the United States (US).

With this feature, you can not only invest in crypto assets but also manage more than 50 US stocks through one INDODAX account that can be accessed in the same application.

To start investing in US stocks, visit the “US Stocks” page on the INDODAX website, then click “Explore Now” to verify and get complete information about the available stocks.

 

FAQ

1. What is the difference between GOOG and GOOGL stocks?
GOOG is a Class C stock without voting rights, while GOOGL is a Class A stock that gives shareholders voting rights.

2. Why does Alphabet Inc. have two types of stocks?
To provide a choice for investors who want voting rights (GOOGL) or just the benefits without voting rights (GOOG).

3. Is investing in Alphabet Inc. stocks safe?
Alphabet stocks have strong potential and long-term stability, but still have risks, especially in the technology sector.

4. Why are Alphabet stocks attractive to investors?
Alphabet dominates the global internet search market and has many stable sources of income, making it an attractive investment choice.