Are you a fan of Google? Are you an investor? Naturally then, you might think about buying some shares of Google. In doing that though, what are you really investing in? What is Google as a whole? And what is the long-term outlook on Google? Then, if you decide to pull the trigger on the investment, there’s this little detail about how to buy Google. Where do you go to buy Google shares? And how much does it cost to buy a share of Google?
All of these questions are valid, and hundreds of people are asking these same questions every day.
Let’s dive in and get you the answers so you can decide of investing in Google shares is right for you!
This post was written by our staff writer, Lindsey Smith! Note that this post is not a recommendation to buy Google stock. It’s merely an informative post and is the opinion of the writer. Please invest at your own risk.
Related: Keep It Simple: The Secret to Wealth
So, you know Google is the top search engine; we’ve coined the phrase “Google it” based on this one company. But Google is more than just the search engine.
While search is their number 1 revenue source, they also host things like advertising, email services, and cloud storage.
Let’s not forget:
- Google Chrome,
- Google hardware (like the Pixel)
- and Google Maps.
- Oh, and YouTube and the Android Operating system. 🙂
Selling advertising is Google’s biggest money-maker
Companies, services, and anyone else who needs ad space has to pay Google to feature their ads on their search engine, websites, YouTube, and other channels.
Google is one of the world’s highest valued companies, with a market capitalization of around $833 billion. Its shares are up more than 5,000% from the time it went public 17 years ago. In 2015 they changed their name from Google to Alphabet to cover all it’s business under one umbrella.
With all this success, inquiring minds want to know…
- Can we buy shares of Google?
- And should we buy it, since it’s had such an incredible run already?
- Are Google shares a good buy right now?
Let’s start by looking at the reasons to invest in Google.
Top Reasons to Invest in Google
Before advising you how to buy Google stock, we should first talk about what might make Google a good investment.
Are Google shares a good buy? Let’s check out the positives.
1) Google has historically been a great investment
Google has been a great stock to invest in for many types of investors, but especially for new investors. Google is one of the top 5 tech stocks to buy and hold, and large-cap tech companies have generally been performing well even through the pandemic.
2) Google has many products that are likely to grow
With the below revenue streams, Google is expected to continue to grow and expand revenues in the years to come.
- Google search,
- Google Cloud,
- Google Chrome,
- Google Hardware,
- Google Maps,
- and Google Play
Google search is the main revenue source for Alphabet Inc, and it’s really hard for competition to come in and get market share from them. As of today, it has an 87% market share in the search business. You’d be hard pressed to find another company that has that high of a market share in their sector. This is what Warren Buffet refers to as a moat, it’s kind of protected from competitors.
YouTube also has had massive growth, 50% year over year, and has massive potential. With bigger celebrity names using the platform, as well as mainstream media and talk shows to name a few, people know it’s the best place to share video content and monetize it.
YouTube has more informational content than ever, with tons of people going to YouTube to learn something over going to Google search. This will be a big driver of its future success as well.
Google Cloud is another solid and growth-focused revenue source with revenues increasing 45% from Q1 2020 to Q1 2021. There will be a huge trend in cloud services over the next five years as demand and complexities grow, so this revenue stream is a lucrative one for Google.
Finally, Google hardware brings more users to Android. Google just opened its first retail store in June of this year, with the goal of moving hardware in order to bring more people in.
They won’t be outselling Apple anytime soon, but their main goal with hardware is to bring people into the Android system (which is far bigger than iOS), collect more data, and drive more advertising – which is Google’s overall main revenue source. Pretty smart.
Reasons to Invest in Google – In Summary
Google has a history of consistent growth, boasting a 5-year average of 20%, and we can expect the stocks to trend with growth. They have a prime example of exponential revenue growth and I predict it’s not over for them. It’s still a hot time to invest in Google and see big returns, plus you have the stability of one of the biggest tech companies in the world.
How To Buy Google Shares
So once you’ve decided you want to invest in Google, what do you do next? How do you buy Google stock directly? Luckily it’s a really simple process, so let’s dive in.
1) Decide What Platform or Broker You Want to Use
How much time do you want to spend learning your platform? There are many out there that range from simple to scratch-your-head complicated. You will also want to watch the fees charged. The best ones are simple, functional, help you learn, and are low-cost.
For beginners, we recommend investing apps like Vanguard and Robinhood, who have some of the lowest fees around.
You can also check out Webull, M1 Finance, TradeStation, FirstTrade, Stash, Public, TD Ameritrade, and eTrade.
Once you decide which online platform you’re going with, it’s time to open your brokerage account.
This process is really self-explanatory as you go through it, but just know that it isn’t instant, and the processing time varies based on your location and the rules and regulations of the platform.
With Vanguard and Robinhood, it’s usually a day or two to verify your bank and you’re on your way.
3) Deposit Your Money
There’s usually a minimum opening account balance, so make sure you know what needs to be deposited initially. But beyond that, you can add as much as you want to your brokerage account. This is what you’ll use to buy your Google stocks.
4) Buy Shares of Google
Now that all the technical stuff is taken care of, you can start investing. You can look for ticker symbol GOOG or GOOGL and invest in either (GOOG does not have voting rights, and GOOGL does). You can enter the amount of shares you want to buy, or dollars you want to invest if they offer fractional shares.
When prompted, I prefer to set up a limit order rather than a simple market order. Limit orders mean you can set a price you’d like to buy the stock at, while market orders automatically buy at the price available from the sellers. This will help protect your money and allow you to decide exactly what you want to spend.
5) Track Your Investment
Your online brokerage account should allow you to easily track your stocks over time. Google is really great as a buy and hold stock. A long-term investment that you don’t intend to sell for a long time. So tracking doesn’t have to be an all-the-time thing, but keeping an eye on how it’s doing can be fun.
A Word On Fees
Always, always, check the fine print. Despite brokerages offering $0 trading commissions, the regulatory bodies you reside in might still have fees.
Sometimes there are commissions and it can cost $4 to $10 per trade, which can really add up. The best advice here is to always fully understand all the fees that might be assessed before committing to a platform.
Individual stocks can be super risky, especially if the market turns quickly.
For example, if some regulatory action hits Google, and the stock plummets, do you want all your money directly tied into that stock?
You take a gamble when you put all your money into one company, even one as formidable as Google.
How to Buy Google Shares With Reduced Risk
There is a way to invest in Google while mitigating the risk of putting all your eggs in one basket.
You can buy mutual funds or ETFs (exchange-traded funds) in which Google is one holding among many.
If you buy an ETF that tracks the S&P 500, or one that’s focused on the tech sector, you’ll gain exposure to Google as well as other top tech companies like…
- and Microsoft.
If Google takes a hit but the others don’t, it’s not as rocky as it would’ve been had you only invested in Google stock.
Buying Shares of Google
So after all that, there are still questions to be answered…
- Should I buy 1 share of Google, or an ETF or mutual fund?
- How much will Google stock be worth in five years?
Let’s iron out these last few questions.
Should I Buy 1 Share of Google?
So…you’ve got the Google bug and you want to invest. But how much does it cost to buy a share of Google?
How Much Is One Share of Google?
As of the time of writing, Google stocks are trading at about $2,751 per share. So the first thing is to consider how much you want to invest directly into Google.
How much risk do you want to assume?
Buying one share of Google means you get a small portion of the profits. When we talked about past performance, we saw how well the company had done, and its trajectory going forward. But, if you own just one share, even a 10% increase means you’ll only earn $275.
Or is the ETF and mutual fund route better for you?
An ETF is lower risk, but you’ll still have exposure to Google. And you won’t have to invest everything you have into one company. Take some time and reflect on your risk tolerance and what you want your ownership to entail.
Google shares are currently $2,751. So how much will Google stock be worth in 5 years?
If only we could know for sure! Without a stock-growth crystal ball, we are left analyzing the information we have and making our best guess.
With YouTube growing 50% year over year, Android being the biggest operating system, and the demand for cloud services skyrocketing, along with Google still wanting to improve on search capabilities, it looks like the exponential growth trend for Google will continue its steady climb.
But by how much? That’s anyone’s guess.
However, we will tell you this. If the trends continue and Google continues to rise in popularity, the stock could possibly see returns of 15% each year (we say that because we’ve seen growth of 50% for some of its subsidiaries!). And, if that’s the case, you could double your money in five years.
So, if you buy one share of Google at $2,751 and the growth is indeed 15% per year, you could earn approximately $2,751 after five years of investing!
Will that happen? Just like we said earlier, nobody knows. But, it’s certainly possible!
Related: Where to Invest Your Money in 2021
Are Google Shares a Good Buy Right Now?
Alright, so Google has been an excellent company for many years. Does it still have a few good years left in it for investors?
According to Investors Business Daily, it might! But of course, they can’t say for sure either.
There are some signs that point to Google being a strong buy, but there are other signs that imply Google stock will remain flat since they are such a huge giant already.
Overall, Google is still a strong company with many chances to achieve growth above other companies. If you’re looking for 800% growth…then it probably won’t happen here. But, if you’re looking for a solid, stable company, this one might be for you. Or, as we said earlier, it might be best to invest in Google via a mutual fund or ETF!
You Wanted to Know How to Buy Google Shares – Now Will You??
Well you wanted to know how to buy Google company shares. Today, you learned that AND MORE!
In this article, you learned:
- what Google really is
- the top reasons for investing in Google
- how to buy Google shares
- how you can buy Google through a mutual fund or ETF and become more diversified (reduced risk)
- what it costs to buy one share of Google
- and, what Google shares might be worth five years from now!
So now the question is, will you invest in Google? Do you think it’s a good investment?
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.