Google (GOOGL) Stock Price

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BUY - rate is expected to increase, i.e. the first currency gains value against the second currency.
SELL - rate is expected to go down, i.e. the first currency is expected to lose value against the second currency.

If you’re reading this online, chances are you know all too well what Google is and what it does. Google (ticker: GOOGL) is much more than a search engine these days though.

The company behind Google, Alphabet, is involved in scores of tech initiatives, from self-driving vehicles to social media. Profitability is usually a direct function of innovation and there is probably no other company out there as focused on innovation as Alphabet.

Google stock can be a little confusing to beginners. There are apparently two types of Alphabet stocks trading out there, bearing different ticker symbols. One is GOOG and the other is GOOGL.

GOOG vs GOOGL

When a company goes public, its founders risk losing control over the operation as more and more shares hit the open market. In Google’s case, founders Larry Page and Sergey Brin did not want to run this risk. Furthermore, Google founders being pushed aside would have also compromised the original vision of the company.

Thus, in April 2014, they created two classes of shares: one which carries voting rights and another which does not. GOOG is the one with no voting rights and GOOGL is the share class with voting rights.

GOOGL shares are class A shares, which is the most common type. Investors who acquire such shares get ownership stake as well as voting rights.

GOOG shares are class C ones. Class C shares offer ownership the same way Class A shares do, but they do not provide voting rights.

Google shares do not pay dividends. Despite that fact, investors have flocked to these shares over the years, turning Google into one of the biggest and most successful companies of the last few decades.

Launched at some $50 per share in August 2004, Google shares are now trading at ~$1,200.

As far as stock value is concerned, Google’s biggest competitor is Facebook. Over the last few years, the social media giant has been dominating this contest, but Alphabet has been catching up more recently.

On top of that, Google has always enjoyed an enduring competitive advantage as far as the internet is concerned. It would at this point entail astronomical costs to beat it at its own game.

What drives the price of Google’s stock?

Internet search is responsible for 90% of Google’s profits. Needless to say that in this arena, the company enjoys an insurmountable advantage. It has been able to consistently deliver more relevant search results faster than its competitors.

Google’s dominance of the online search market amounts to a massive 75%. Thanks to its policy to pay Apple to feature Google as the default search engine on its devices, Google currently processes some 85% of mobile searches.

In addition to its immense competitive advantage, Google also possesses the means to buy out any potential competitor, before it becomes a real threat.

Most of the risks attached to Google stock stem from regulators and various national and trans-national authorities.

The US government as well as the EU have already stepped up to limit Google activities and to exert control over its business.

BUY - rate is expected to increase, i.e. the first currency gains value against the second currency.
SELL - rate is expected to go down, i.e. the first currency is expected to lose value against the second currency.

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