How to Buy Google Shares and Why

Roberto Rivero

Google is without a doubt one of the most successful technology companies ever, with a near monopoly on the search engine industry, and is so ingrained in modern life that the word itself has become a verb.

But is it worth investing in Google in 2022? In this article, we will examine why someone would want to invest in Google, analyse the recent Google share price, demonstrate how to buy Google shares and much more!

A Brief History of Google Stock

Since its creation, Google has become one of the best known brands in the world and one of the most visited websites on the internet. But how did it get to this stage?

Before we look at investing in Google and how to buy Google shares, let’s take a look at some key moments in the history of Google stock.

  • 1996: Google begins as a research project, attempting to find a better system for search engines to find results
  • 1998: The company is incorporated and raises $1 million from private investors, including a $250,000 investment from Amazon founder Jeff Bezos
  • 2001: Google records first profit
  • 2004: Google goes public via an Initial Public Offering (IPO) priced at $85 a share
  • 2006: Acquisition of YouTube and addition to the S&P 500 index
  • 2011: Google handling 3 billion searches a day
  • 2015: Google reorganises its interests into a conglomerate named Alphabet
  • 2020: Alphabet market capitalisation surpasses $1 trillion, the fourth US company ever to do so

Google Financial Results – Q2 2022

Thanks to the strength of its core advertising business, Google stock has consistently reported strong results since its debut on the stock market.

It is important to remember that, when buying Google shares, you are buying a part of the company, meaning that the success of your investment is reliant on the continued success of Google. Therefore, before investing in Google, it is a good idea to take a look through their recent financial results.

In the table below, we have highlighted some of the key figures from the most recent Google financial results for Q2 2022, in which the company reported weaker-than-expected revenue and earnings.

Google Q2 Results 2022
  Q2 2022 Q2 2021 % Change YoY
Total Revenue $69,685 m $61,880 m 13%
Net Income $16,002 m $18,525 m -13.6%
Earnings per Share (EPS) $1.21 $1.36 -12.4%

 Source: Alphabet – Second Quarter Results 2022

Google Stock Price Analysis      

In Google’s almost 20 year history on the stock market, Google shares have recorded phenomenal growth, rewarding investors with considerable returns along the way. Before we address the question of ‘should I invest in Google?’ let’s take a look at the recent history of the Google stock price.

Depicted: Admirals MetaTrader 5Alphabet Inc. Weekly Chart. Date Range: 24 January 2016 – 29 July 2022. Date Captured: 29 July 2022. Past performance is not a reliable indicator of future results.

Between the beginning of 2016 and the end of 2019, Google shares gained more than 72%. The year 2020 began with continued gains, however, at the outset of the Covid-19 pandemic in February, Google’s stock price fell sharply.

Nevertheless, Google was one of a number of technology stocks which actually went on to benefit from the lockdown measures implemented in response to Covid-19 around in the world.

After closing at its lowest level in almost a year on 23 March 2020, Google embarked on a bullish streak which saw the Google share price gain more than 66% by the end of the year, adding a further 65% in 2021.

How much would you have if you invested in Google IPO?
A $1,000 investment in Google stock at the IPO price of $85 would have bought you 11 Google shares. Accounting for the two Google stock splits, this position would have been worth around $63,670 at the end of 2021!

As with much of the stock market, in 2022, Google shares have been negatively affected by economic uncertainty, which has disproportionately affected tech stocks. In the first half of the year, Google shares fell by almost 25% compared to the wider S&P 500 which fell around 20% over the same time period.

Is this downturn in share price an opportunity to invest in Google stock? Or will the Google share price continue to move in the wrong direction for investors?

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Do you think that Google stock will continue falling in 2022? With a Trade.MT5 account from Admirals, traders can trade Contracts for Difference (CFDs) on Google shares and over 3,300 other stocks from around the world!

CFDs allow traders to attempt to profit from both rising and falling prices and also benefit from the use of leverage! Click the banner below to register for a Trade.MT5 account today:

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Google Stock Split 2022

On 18 July 2022, Google conducted a stock split of 20:1, meaning that, for every one share owned by investors, they received an additional 19. Simultaneously, the Google share price was divided by 20 to account for the additional Google shares in circulation.

This latest stock split followed a previous one which took place in 2014 at 1,998:1,000, meaning that, for every 1,000 shares held before the split, shareholders received an additional 998.

In the chart below, the most recent Google stock split date is indicated by the red line.

Depicted: Admirals MetaTrader 5 – Alphabet Inc. Daily Chart. Date Range: 30 March 2021 – 3 August 2022. Date Captured: 4 August 2022. Past performance is not a reliable indicator of future results.

Should I Invest in Google Stock in 2022?

Google has been one of the most successful technology stocks of the century, but will its success continue? Is it worth investing in Google in 2022?

We looked earlier at Google’s most recent results in Q2 2022. Although revenue grew year on year, both net income and EPS fell. However, we should bear in mind when looking at these results that 2021 was an exceptional year for Google.

The extraordinary success of 2021 means that it has created some slightly unattractive year on year comparisons for Google’s 2022 results; something which is true for many of 2021’s other top performers as well.

However, drilling down into their financial results there is still a lot to like about Google stock. Revenue from Google advertising - which delivers the bulk of Google’s total revenue, accounting for more than 80% in 2021 – continued to grow year on year, albeit at a slower pace of 11.5%.

This is not bad when compared with Google’s top competitors in the digital advertising field - particularly Meta Platforms, one of their biggest rivals, who’s advertising revenue fell 1.5% in Q2.

Furthermore, although revenue from Google Cloud makes up a small percentage of total revenue, it continues to expand at a fast pace, with Q2 revenue growing more than 35% year on year. Although Google Cloud lags behind Microsoft’s Azure and Amazon Web Services in terms of cloud infrastructure market share, its rapid expansion in this fast growing market is impressive.

We mentioned earlier that, so far, 2022 has been unkind to the stock market, but it has been particularly difficult going for technology stocks, many of which enjoyed great success in 2020 and 2021.

The recent sell-off in technology stocks means that, those who are bullish on the long-term success of the sector, may have an opportunity to buy Google shares at lower valuations. However, given the uncertain economic climate we find ourselves in, those thinking about investing in Google should be braced for ongoing volatility in the near future.

How to Buy Google Shares

With an Invest.MT5 account from Admirals, you can buy shares in Google and over 4,300 other listed companies from around the world! In order to buy Google shares, follow these steps:

  • Open an Invest.MT5 account and log into the Traders Room
  • Next to your account details, click 'Invest' to open the MetaTrader WebTrader
  • In the Market Watch on the left-hand of the screen, search for Google stock and add it to the list of symbols
  • Click the symbol and drag it onto the main chart to open a Google price chart
  • Click the 'New Order' button at the top of the screen, enter the number of Google shares you want to buy and send the order to the market in order to invest in Google stock!
Depicted: Admirals MetaTrader WebTrader – Alphabet Inc. Daily Chart – New Order. Date Captured: 4 August 2022. Past performance is not a reliable indicator of future results.

Investing in Google FAQ

What price did Google stock start at?

The Google IPO price was $85 per share.

It opened its first day on the Nasdaq Stock Exchange at $100.00 per share and closed the session at $100.34 per share.

 

What is the ticker symbol for Google?

Google has two classes of shares which are publicly traded on the Nasdaq Stock Exchange. Their ticker symbols are GOOG and GOOGL.

 

What is the difference between GOOG and GOOGL?

The difference between GOOG vs GOOGL shares comes down to voting rights. GOOGL (Class A) shares have voting rights in the form of one-share-one-vote, whereas GOOG (Class C) shares do not have any voting rights. For this reason, sometimes, you may notice that GOOGL shares trade at a slight premium to GOOG.

There is actually a third class of Google stock (Class B) which is not publicly traded and only held by founders. Google Class B shares come with 10 votes per share.

 

When is the Google stock split 2022?

The Google stock split took place on 18 July 2022. Google shareholders each received 19 additional shares for every share they owned.

Investing with Admirals

With an Invest.MT5 account from Admirals, investors can buy shares in Google as well as more than 4,300 stocks and over 300 Exchange-Traded Funds (ETFs) from 15 of the world’s largest stock exchanges! Click the banner below in order to open an account today:

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INFORMATION ABOUT ANALYTICAL MATERIALS:  

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following:  

  1. This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
  2. Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
  3. With view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for prevention and management of conflicts of interest.
  4. The Analysis is prepared by an independent analyst Roberto Rivero, Freelance Contributor (hereinafter "Author") based on personal estimations.
  5. Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.
  6. Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
  7. Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.
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