Google stock, managed by parent company Alphabet Inc., is one of the favorite choices of investors due to its impressive performance and continuous innovation.

With its rapid growth in the technology sector, Google has attracted the attention of many people looking for profitable investment opportunities. However, before deciding to invest, it is important to understand the difference between GOOGL and GOOG stocks.

This is because, although both represent ownership in the same company, the difference in voting rights can affect investment decisions.

In this article, we will discuss more about Google stock, the history of the company, the steps to buy shares, and why investing in Google can be a smart choice.

Also Read: Dissecting 8 Types of Stocks: Which One is Right for You?

What is Google Stock? and Its Stock Structure

Google stock is part of Alphabet Inc., the parent company that manages Google and various other services and products, including Gmail, YouTube, Google Drive, and the Android operating system.

With its presence on various stock exchanges around the world, Alphabet Inc. stock is one of the most traded and is often included in major stock indexes, such as the S&P 500.

Google Inc. has undergone a transformation into Alphabet Inc., a holding company that includes various projects, including Google. As a result of this reorganization, there are two stock codes that represent Alphabet, namely GOOGL and GOOG.

The main difference between GOOG and GOOGL lies in the voting rights held by shareholders. GOOG stock, which is a class C stock code, does not provide voting rights at shareholder meetings.

On the other hand, GOOGL stock, as a class A stock code, provides voting rights to its owners. Both types of shares are traded on the NASDAQ exchange.

Despite having different codes, both represent ownership in the same company, namely Alphabet Inc., the parent of Google.

Also Read: American stock exchange hours Indonesian time

A Brief History of Google Stock

Google took the step to go public on August 19, 2004, releasing 22,500,000 shares at a price of US$85 per share.

From this initial public offering, the company managed to raise funds of US$1,900,000,000. In a short time, the value of Google shares experienced an extraordinary surge.

On December 7, 2007, its share price reached its highest peak in the 2000s, namely US$714.87, recording an increase of 741.02% since the IPO, thanks to the rapid growth of the business and internet innovation carried out by the company.

However, the value of the shares then fell drastically due to the financial crisis that hit the United States. Google even carried out a stock split twice since it first went public.

Here are the details about this stock split:

The first stock split occurred on April 3, 2014, at a ratio of 1,998:1,000, when Google’s stock price reached US$1,135.10. At that time, class A shareholders received 1,000 class A shares and 998 class C shares. A year after the stock split, Google restructured and formed a new holding company called Alphabet.

The second stock split took place on July 15, 2022, at a ratio of 20:1, when its stock price reached US$2,200 per share.

Currently, Google’s stock has become one of the most popular on the US stock market. As of March 21, 2023, Google’s stock market capitalization reached US$1,300,000,000,000.

That figure is equivalent to Indonesia’s Gross Domestic Product (GDP) in 2022, making it the fourth-largest market capitalization stock on the US stock exchange.

How to Buy Google Stock for Beginner Investors

For beginner investors, buying Google stock can be an interesting first step in the world of investment. With a variety of platforms available, the stock purchase process can be done relatively easily.

Here are the steps to follow to buy Google stock:

Choose an Investment Platform or Application: Choose a platform that provides access to the global stock market, including American stocks.
Create an Account and Verify Identity: Follow the registration and identity verification process according to the rules set by the platform.
Deposit Funds into a Trading Account: Choose the payment method that is most convenient for you, such as bank transfer or e-wallet.
Search for Stock Code (GOOGL or GOOG): Use the steps on the platform to find Google stock.
Make a Purchase: Determine the number of shares you want to buy, then complete the purchase transaction.

As an investment tip, don’t forget to diversify your investments, understand your risk profile, and consider investing in the long term.

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

Reasons to Invest in Google Stock

Investing in Google stock offers many advantages that make it an attractive option for investors. Here are some compelling reasons to consider investing in the company’s stock:

• Strong Market Dominance and Products: Google dominates the internet search market and has a variety of other popular products, such as YouTube, Android, and Google Chrome, that are integral parts of users’ daily lives.
• Large User Base: With billions of people using Google products worldwide, the company is able to generate sustainable revenue.
• Innovation in Technology and AI: Google is actively developing future technologies, especially in the area of ??artificial intelligence, which increases its growth potential.
• Recession Resilience: Google has a proven track record of weathering tough economic conditions, with the ability to recover quickly from previous financial crises.

Conclusion

So, that was an interesting discussion about the Complete Guide to Google Stocks: History, How to Buy, and Future Prospects that you can read in full at the Crypto Academy at INDODAX Academy.

In conclusion, investing in Google stocks offers various benefits, ranging from solid fundamental strength to promising technological prospects.

With strong market dominance, a broad user base, and a commitment to innovation, Google shows profitable growth potential for investors.

However, it is important for each investor to consider their investment goals and risk tolerance before deciding to buy stocks. Make sure to do in-depth research and analysis to make the right decision.

In addition, investors are also advised to continue to monitor the latest developments regarding Alphabet and the technology market as a whole in order to stay informed in implementing an effective investment strategy.

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FAQ and Short Answers

1. What is the difference between GOOGL and GOOG stocks?
GOOGL has voting rights in company decisions, while GOOG does not.

2. How to buy Google stocks from Indonesia?
Use an investment platform that provides access to the global market, such as a US stock app.

3. What are the main advantages of investing in Google stocks?
Google’s market dominance, large user base, technological innovation, and financial resilience.

4. What are the biggest risks in investing in Google stocks?
Antitrust and competition challenges in the tech sector, especially in AI.

5. Will Alphabet Inc. continue to grow in the future?
The outlook is positive, especially with major investments in AI technology and other innovative products.