Google is one of the most successful stocks of the 21st century and experts predict it will remain a valuable investment next year, as well. Read below more about this renowned stock and find out how you can invest in it effectively.
What you Need to know About the Google Stock
Google was founded in 1998 by Larry Page and Sergey Brin. On October 2nd 2015, after the corporate restructure of Google LLC, Alphabet Inc. was created, becoming the parent company of the multinational technology company and its subsidiaries.
All shares of Google’s stock have been converted into Alphabet stock. However, they kept trading under Google’s former symbols, namely GOOG and GOOGL. The company is listed on the NASDAQ stock exchange with two categories of shares: GOOGL – class A shares and GOOG – class C shares. The first category, class A shares, also known as common shares, apart from an ownership stake, they also give shareholders voting rights. In comparison, Class C shares give stockholders an ownership stake in the company, but no voting rights.
Alphabet Inc. is also a member of the prestigious NASDAQ – 100, S&P 100, and S&P 500 stock market indexes.
How to Invest in Google Stocks like a Pro
Fifteen years after its Initial Public Offering (IPO), the company still has an enviable revenue growth. The giant controls more than 60% of the U.S. market, and over 80% of the global market share. It is safe to say that simply owning a piece of the largest and most profitable search engine in the world is going to be a rewarding investment. However, in order to make the best out of it, consider the following things:
Research
The stock market is a complex financial market and has a lot of particularities that you need to be aware of. If you want to enjoy a profitable investment, learn about the stock market itself, but also about the Google stocks. Don’t overlook the fact that Alphabet is arguably one of the largest and most powerful companies in the tech business sector. Try to read about its history and growth on the stock market. Use reliable sources and write down everything that might help you enrich your investment.
Set up a Brokerage Account
To be able to make any transactions in the stock market, you need to set up an account with an online broker. This step can make the difference, as the company you choose to trust with your investments will have a big impact on your endeavor. To clarify, the broker will “host” your investment on its platform, which means it has to offer a safe, modern and friendly trading environment. For example, TradeFW is a great online trading platform for trading stocks. Not only does it give you access to the tech giant stock, but it also provides you with all the necessary tools and learning materials to grow your investment.
Determine How Much Google stock to Purchase
After opening an account with an online broker, the next important step is to determine how much stock you want to buy. You can take the dollar value you want to invest and divide it by the current share price, rounding it down to a whole number. That amount represents, in fact, the maximum amount of available shares to purchase at the current stock price.
Set Objectives and Goals
Investing in Google shares is not enough. If you want to turn this into a profitable opportunity, you need to set clear objectives for your investment, as well as a goal. For example, for how long do plan on keeping this investment? How much money are you willing to invest and what are your financial expectations? It is essential to create an investment plan from the beginning and monitor the progress along the way. Feel free to adjust and improve it.
Google Stock Forecast – What will 2020 Bring?
You are still not sure whether to buy Google shares or not? Let’s see what the projections for this stock are saying. Firstly, it is believed that GOOGL’s future stock price will be worth 1944.450 USD in five years. Furthermore, another analysis made by the news portal Wallet Investor shows that the long-term earning potential for the Alphabet stock is +11.42% in one year. There is no sign of stock price cash in the near future and Alphabet’s GOOGL shares, as well as its market environment have been in a bullish cycle in the last 12 months.
On the other side, according to Google executive Caesar Sengupta, the company is planning to enter the banking space next year, by offering checking accounts to consumers. Its desire to continue invest in new projects is one of the things that allow it to remain a growth stock despite hundreds of billions in annual revenue. A further expansion has a game-changing potential in terms of earnings, which will positively impact your investment, as well.
To sum up, Google has had its ups and downs, but there will be a positive trend in the future. Due to its massive cash holdings and dominance within many business sectors, the Alphabet stocks remain a strong buy. This is undoubtedly a safe investment that will bring you profits and enhance your portfolio. With the right broker and a solid investment plan, Google can become an extremely rewarding stock!
