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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1. An overview of Alphabet
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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2. How Alphabet stock is performing
Alphabet's stock shows resilience, navigating through market fluctuations with quick rebounds. Despite occasional dips, the stock has generally trended upwards.
As of Sept. 4, 2024, Alphabet's stock has increased 15% over the last year. While the stock doesn’t currently pay dividends, stocks increasing 15% in 12 months make for happy investors.
3. Understanding Alphabet’s financials
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. In 2024, Alphabet's net income for the quarter ending June 30 was $23 billion.
Earnings per share or EPS represents how much profit each stock share represents. For Alphabet stock, the EPS for 2023 was $5.80. The basic EPS as of June 30 was $1.91.
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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4. What’s ahead for Alphabet
Experts are optimistic about Alphabet's stock, with most saying it's a strong 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.
5. How to buy Alphabet stock
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 $157, it will cost you $471 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
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.
Money tips that can work for everyone
No matter what your bank account balance is, there's always an opportunity to optimize and improve your finances. Here's a quick checklist of things you can look at today.
Focus on paying off your debt . Debt can hold you back from making progress with your overall financial well-being. Aside from cutting expenses, there are tools that can help you pay off debt faster like balance transfer credit cards and debt counseling.
Earning extra income can give you breathing room. If finances are tight, earning some extra money to supplement your income can make a huge difference. A new job is one option to consider, but if you're not ready to make a big change or already retired, a part-time side job could be a better choice.
Cut your expenses. It sounds painful and so not fun, but it doesn't have to be. Take a look at your biggest expenses because that's where you'll probably find the biggest savings. For example, auto insurance rates have been soaring so shopping around for a new insurance company can be the fastest way to cut your bill. Also, look for ways to cut your grocery bill (despite rising inflation).
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