Alphabet Inc. (NASDAQ: GOOG) is a multinational technology conglomerate headquartered in Mountain View, California. It was created by the restructuring of Google on October 2, 2015. Alphabet is the parent company of Google and several former Google subsidiaries. It is considered one of the world’s most valuable companies.
Google has two classes of publicly traded stock. Class A shares have the largest voting power, while class C shares have the least. The company has made the company’s shares more accessible by implementing a stock split. Google stock class C shares do not have voting privileges at shareholder meetings, but are traded at a discount to their class A counterpart. These shares usually move in correlation with the class A shares.
You can buy shares of Google stock using a brokerage. Some brokers allow you to purchase fractional shares of the stock, so that you only pay for a portion of the stock. The stock will go through a 20-to-1 stock split on July 15, 2022, which will bring down the price of individual shares. However, investors can still profit from this low price if they invest before the split.
Alphabet’s share classes are divided into two classes: Class A and Class B. The former is owned by Google employees and co-founders, while the latter is owned by the general public. As a result, the former is worth more than the latter. However, both share classes have the same economic interest in the company and should continue to trade in tandem over time.
After the split, Alphabet created a new class of shares that it issued to shareholders. These new shares were issued at half the cost of the current shares, but didn’t have voting rights. The new shares were designated as Class C shares. These new shares were owned by Brin, Page, and Schmidt, who also held Class A shares.
Alphabet’s monopolistic dominance in the advertising market is under constant scrutiny from regulators, and its privacy practices are the subject of privacy concerns. Despite the huge growth of Google, the company remains highly reliant on its core advertising business. It has invested billions of dollars in other ventures, but none of these ventures have been profitable.
In mid-May, Google demonstrated the potential of artificial intelligence tools to enhance its business. These tools could include virtual reality and voice-based search. The company’s stock has fallen out of the IBD Leaderboard, which curates a list of leading tech stocks. This could make it more appealing for retail investors.
Alphabet’s core Search business seems relatively secure, and sales are likely to continue growing along with the market. Its new project, Waymo, could lead to substantial earnings growth in the future.