What is Alphabet Stock

Alphabet stock refers to the shares of Alphabet Inc. (parent company of Google). It's a publicly traded company with different classes of shares, often designated as Class A (GOOGL) and Class C (GOOG). These classes typically have different voting rights, with Class A shares generally having one vote per share and Class C shares having no voting rights.

Alphabet Inc. was created through a corporate restructuring of Google in 2015. While Google remains its core business, Alphabet now acts as the umbrella company for other ventures, including YouTube, Waymo, Verily, and DeepMind.

As a public company, Alphabet’s shares are traded under multiple ticker symbols, reflecting different classes of shares — each with unique rights and voting power.

Alphabet issues three distinct classes of shares, each carrying a different ticker and set of voting rights:

Class A (GOOGL)

These are the standard publicly traded shares that come with one vote per share. Investors who hold GOOGL shares can vote on corporate decisions, including board elections.

Class B

Reserved for founders and top executives, these shares carry ten votes each but are not available for public trading. This structure allows company insiders to maintain control over major decisions.

Class C (GOOG)

These shares offer no voting rights but are also publicly traded. GOOG shares are often priced similarly to GOOGL but may differ slightly depending on market demand.

The multi-class structure was introduced to maintain founder control while still allowing Alphabet to raise capital from public investors. With Class B shares holding ten times the voting power, founders like Larry Page and Sergey Brin can influence long-term strategies, regardless of external investor pressures.

This approach balances public ownership and strategic independence, which is crucial for a company focused on long-term innovation rather than short-term profits.

Alphabet stock has consistently been part of major stock indices such as the NASDAQ-100 and the S&P 500. Its performance is influenced by various revenue streams, most notably:

• Advertising Revenue (Google Ads, YouTube Ads)
  

• Cloud Services (Google Cloud Platform)
  

• Hardware and Consumer Devices
  

• Other Bets (experimental projects like Waymo and Verily)
  

Alphabet’s consistent revenue growth, cash reserves, and global reach have made it a favourite among tech-focused investors.

However, investors must understand that GOOG and GOOGL, despite tracking the same business fundamentals, behave slightly differently in the market, particularly around shareholder voting matters.

Alphabet is involved in projects across artificial intelligence, cloud computing, self-driving cars, and more. Its strategic investments continue to shape internet infrastructure and consumer habits worldwide.

In India, Alphabet’s role is equally important, with deep penetration through Google Search, Android, Google Pay, and local cloud services. These platforms influence user behaviour, digital payments, and online business models across the country.

Here are some indicative numbers based on the most recent financial data (please refer to official sources for current market prices):

• Revenue (2024): Over $320 Billion globally
  

• Market Capitalisation: Approximately $1.8 Trillion
  

• EPS (Earnings Per Share): Varies by share class but consistently reflects strong profitability
  

• Price Range: Post-split prices have ranged between $100 and $180+ per share depending on market conditions.

These metrics are subject to change based on market dynamics and quarterly earnings reports.

Refer the below table :-

Both stocks represent the same underlying company and receive the same financial benefits. The choice depends on whether voting rights are important to the investor.

• No Guaranteed Returns: Alphabet stock, like any other, is subject to market fluctuations.
  

• Voting Rights Do Not Influence Daily Gains: For most retail investors, voting rights rarely impact short-term returns.
  

• Currency Considerations: Alphabet shares are listed in USD. Indian investors need to factor in exchange rate fluctuations.

Alphabet stock represents a global technology leader with multiple share classes catering to different investor profiles. Whether you hold GOOG or GOOGL, you gain exposure to one of the world’s most innovative companies. However, understanding the difference in voting rights and share structure is key to making an informed choice. Always consider the broader market risks and personal investment goals before participating.

This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.