How to Buy Google Shares and Why
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 2023? 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!
Table of Contents
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.
|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.
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.
|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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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.
Should I Invest in Google Stock in 2023?
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 2023?
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 Dashboard
- 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!
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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