Alphabet Stock: 6 Things You Must Know Before Investing

NEWS & TRENDING - INVESTING NEWS
Learn all you need to know about the search engine titan to fuel your investment.
Updated April 23, 2024
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In the ever-evolving landscape of tech giants, Alphabet Inc. stands tall as one of the most influential companies globally, alongside Meta, Amazon, Apple, and Microsoft.

Its search engine is a household name, but the company is so much more than that. Alphabet's ventures into cutting-edge technologies mean its stock has been a staple for investors seeking growth and stability.

Before you start investing in this tech titan, let’s examine its history, financial track record, and experts' predictions about its future.

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An overview of Alphabet

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Google was founded in 1998 by Larry Page and Sergey Brin, who were both PhD students at Stanford University. This project took on many different versions before it settled in as the search engine we know as Google.

The company was reorganized in 2015, with Alphabet becoming the parent company and Google becoming a subsidiary. Operating in the technology sector, Alphabet owns two of the most visited websites on the Internet: Google and YouTube.

Beyond that, the tech giant offers other innovative products and services, including Google Maps, Android OS, and the revolutionary self-driving car project, Waymo.

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How Alphabet stock is performing

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Alphabet's stock shows resilience, navigating through market fluctuations with quick rebounds. Despite occasional dips, the stock has generally trended upwards.

As of April 1, 2024, Alphabet's stock has increased 49% over the last year and 15% in the last quarter. While the stock doesn’t currently pay dividends, stocks increasing 49% in 12 months make for happy investors.

Understanding Alphabet’s financials

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Revenue is the total amount of money generated from sales of goods and/or services. Alphabet brings in a lot of money each year, and 2023 was no different. Total revenue for 2023 was over 307 billion dollars.

Net income is the profit left after expenses. In 2023, Alphabet's net income was almost 74 billion. That means after they paid all their employees, operating costs, and other liabilities, there was almost 74 billion left over.

Earnings per share or EPS represents how much profit each stock share represents. For Alphabet stock, the EPS for 2023 was $5.80.

From all accounts, Alphabet is doing well financially. The numbers increased from 2022 to 2023 as well and continue to trend upward.

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What’s ahead for Alphabet

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Experts are optimistic about Alphabet's stock, with most saying it's a good buy. Analysts predict that prices will go up and that this stock will outperform the market.

Some believe Alphabet is currently undervalued, meaning the market will correct that in the future by increasing in value. Others anticipate Alphabet's work on artificial intelligence, healthcare, and self-driving cars.

How to buy Alphabet stock

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If you want to add Alphabet stock to your investment portfolio, you have two options: buying stock through a traditional brokerage account and buying fractional shares.

When you buy stocks through a traditional broker, you are buying a whole share at the current stock price. If you want three shares of Alphabet, and each share costs $155, it will cost you $465 to own three shares.

Fractional shares are a way to own a partial share in a company. If you can’t afford an entire share or want to diversify your investing portfolio, fractional shares let you purchase based on the dollar amount you want to spend vs. the current cost.

You can start investing today by using one of the best online brokerage accounts.

Bottom line

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Alphabet's stock is a popular way to start investing because it combines new, cutting-edge technology with growth and financial stability.

It's not just about current profits (which are in the billions) — it's about investing in the company's future and potential growth opportunities.

Alphabet's big projects, like those in healthcare and renewable energy, show it's not slowing down anytime soon.

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  • Get up to $50K of your deposits instantly, so you can jump on investment opportunities faster
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Author Details

Holly Humbert Holly is a writer who recognizes that there isn't a one-size-fits-all approach to personal finance. She is passionate about entrepreneurship, women in business, and financial literacy. With more than four years of experience, her work has been featured on MarketWatch and The Ways to Wealth.

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