How can you buy Google (Alphabet) shares?
You probably ended up on this website through Google. Googling has become a household word; you can even find the word in every dictionary nowadays. The immense popularity of the company Google can make it interesting to invest in Google by buying shares; but how do you actually do this? On this page you will also find the current stock price.
How can you actively invest in Alphabet?
Do you want to actively invest in Google shares? That can work out well! By actively investing you can place orders during special events. For example, you can place an order at a falling price when things are not going so well with Google. Active trading gives you full control and flexibility over your investment.
A good party to actively trade in Google CFD shares is Plus500. With this party, you can also trade in Google with a smaller amount by using leverage. Use the button below to open a free demo account with Plus500 :
Where can you buy Google stocks?
Do you have confidence in Google and its parent company Alphabet? In that case, it can be very interesting to invest in Alphabet shares. In the past, shareholders have benefited greatly from the Google share. Would you like to buy the Google share yourself? Then it is best to do this at eToro. At this broker you do not pay any fixed commissions when you buy stocks. With the button below you can open an account directly:
What is the stock price of (Alphabet)?
Are you curious about the current price of the Alphabet (Google) share? Below you can view the CFD price of Alphabet. With the Google stock price, you can determine whether you want to invest in the share. Would you like to place an order directly? You can use the buttons in the chart.
What do you want to know about Google (Alphabet) shares?
- What does Alphabet do?
- What is the analysis of the Google share?
- What are the main competitors?
- Why should you buy Alphabet stocks?
- What are the risks of investing in Alphabet?
- What is the share price development?
- When should you buy Google stocks?
- How does Google earn its money?
Everyone knows Google from the search engine; but did you know that Google is more than just a search engine? A lot has happened since Larry Page and Sergey Brin founded Google on 4 September 1998. The beauty of the company is that it was once opened in a small garage. Nowadays, Google is an indispensable player on the internet market.
In the UK, Google is the broad market leader in the search engine market, with almost ninety percent; this can make it an attractive investment where it can certainly be worth buying up the shares at the right time.
Let us start with a brief analysis of the Alphabet stock. Since 2015, Google has been part of the Alphabet group as a separate company. Within this organizational structure, the separate companies such as Google and Life Science have a great deal of freedom to carry out their tasks properly.
Google can make a lot of extra profit from the sale of smartphones and tablets in the future. There are still more people who know how to find their way to these products. In addition, the Android operating system is becoming increasingly popular. Alphabet or Google can respond nicely to these trends by selling even more of these products.
However, the search giant is under some pressure due to the emergence of alternatives. For example, many people use applications to find answers to their pressing questions. At the moment, Google is still leading the world as a search engine. Do you think that this is how Google manages to maintain it? Then it may be attractive to buy Alphabet stocks.
Another threat you have to look out for is the image of the search giant. For example, there was a well-known court case where it emerged that Google placed competitors less high up in the search engine. The European Commission fined Google and the search giant had to change its ways. Of course, events like this are not good for a company’s reputation.
Do you want to buy Google or Alphabet shares? Think for yourself if you have confidence in the future of the company. Is this the case? Then it is certainly attractive to buy the stocks.
In the UK, Google is the clear market leader with a market share of approximately 85%. This is also the case worldwide. Yet there is competition. Which competitors should you pay most attention to before buying Alphabet shares?
Bing is Microsoft’s search engine and the second largest search engine worldwide. With a market share of 2.32%, Bing is by far not as big as Google, which enjoys a worldwide market share of 92.71%. Nevertheless, Google will have to keep an eye on Bing.
Yahoo! used to be a lot bigger. Still, the search engine is only used by about 1.6% of the world’s population. In some countries, Yahoo!’s market share is still remarkably large. In Indonesia, Iraq and Iran, Yahoo! has a larger number of users.
Baidu is a large search engine in China. Google is blocked in China through normal channels. As a result, the local Baidu has become large. In China, the search engine holds 67% of the market. China is of course an interesting market for search engines because of its size and rapid economic developments.
In Russia, Google is still the largest, but it only outperforms the local search engine Yandex by a tiny bit. In this region, Google will therefore have to do its utmost to remain the largest search engine.
There are several local competitors in different countries. Google will have to continue to analyse the specific markets to stay ahead of local competitors. In South Korea, for example, Naver is widely used. SNZ is a popular search engine in Slovakia and Seznam in the Czech Republic.
Overall, we can conclude that Google is a strong brand that dominates worldwide. This does not mean that Google can sit back and relax. There are plenty of other regions where the threat of another search engine can be felt. Do you think Google can continue to expand? In that case, it could certainly be interesting to buy Google shares.
Before investing in Alphabet or Google shares, you must understand the strengths of the company. We will discuss the positive points of the share below.
Google receives an enormous amount of interesting data. Worldwide, Google receives many billions of searches every day. Based on this, Google can use highly complex algorithms to predict how people behave on the internet, which is of course of interest to advertisers.
This information will lead to advertisements becoming more sophisticated and to advertisers being able to reach a certain target group easier. This contributes to the profitability of the Alphabet share and can positively influence the price.
Google is more than just a search engine. Google is part of Alphabet, which includes many more products. Think for example of the production of Android phones and Google Home. Google also owns YouTube and regularly launches interesting new products. A company that diversifies is less dependent on one source of income and can therefore be a safer investment.
The company makes a profit
Every year, Google or Alphabet post nice profit figures. This can also be seen in the development of the share price. When Google went public, the shares were only worth 54 dollars. 14 years later, the share price has gone beyond 1000 dollars. As an investor, Google is therefore a financially interesting stock. Do you think Google can maintain this price? Then it might be interesting to buy Google shares and add them to your portfolio.
Google dominates the global market. As a result, they enjoy a strong brand name. Everyone knows Google and the word is even included as a verb in the dictionary. Because the company is so large, it can also benefit from economies of scale: for example, large data centres can reduce costs.
Another asset for Google is the Android operating system for mobile phones. In contrast to Apple’s operating system, this system also works on cheaper phones. As a result, can reach a wider audience. It is precisely these emerging economies that will be a major source of income in the coming decades. Google is responding well to this trend and this can have a positive effect on the future share price developments.
Buying shares in Alphabet or Google also involves some risks. Let us look at the potential weaknesses of this share.
Risk of near monopoly
Google is so strong that it is sometimes seen as a monopoly. In such cases, the European Commission quickly imposes fines running into billions. As an investor, therefore, you have to keep a close eye on whether Google abides by all the laws and regulations. The company is regularly under a magnifying glass and fines can put pressure under the share price.
Ethics and privacy
Google or Alphabet must also be careful to protect their reputation. It is not always entirely clear what Google does with all the data. Google has enormous power in determining what information is or is not shown to the public. Bad news can give Alphabet’s stock price a negative impulse. Therefore, always keep an eye on the news when you want to buy stocks in Google.
More than 90% of Google’s income comes from the advertisements. These ads are placed by consumers and companies. When the economy is not doing well, the advertising budgets decrease. This is then at the expense of Google’s profitability.
It is therefore wise, before you buy Google shares, to analyse how the economy is doing. Does it look like the economy is going to shrink in the future? Then perhaps it would be better to wait awhile before investing in Google shares.
Google also does not always do everything right. The Alphabet social network, for example, was a downright fail. Another example of failure were the Google glasses, which were never released in the end. Google invests a lot of money in the development of new techniques, and they regularly earn a lot of money from this. Nevertheless, it is important to keep a close eye on these development costs.
We have already discussed Google’s main competitors in the article. However, it is important to emphasize once again that it is important to keep a close eye on the competition from Alphabet. After all, Facebook has also replaced Myspace in a not too short time. Who says that another party cannot do the same with Google?
Below you can see the price development of Google shares. As you can see, Google shares move regularly. News items can have a strong influence on the share price. You can further use the price development to predict future trends. When you actively invest in Alphabet shares, you can optimally respond to the current market situation.
Now, of course, the question is how to know when to buy the shares; for this it is important to use good timing. Before you open an investment, you must have a good reason for doing so. A reason can be both fundamental and technical.
For a fundamental reason, you buy Google shares because you see something in the figures or news reports that you think will increase the value of the company. Think, for example, of higher expected profit figures or perhaps a successful acquisition of another company by Google. You can read more about this in our article on fundamental analysis.
Another increasingly popular way of investing is with technical analysis. In this case, you look for certain patterns within the Google share chart. Think of certain levels that the price always touches and then bounces off again. You can read more about this in our tutorial on investing >>
However, before you place your first investment in Google, it is wise to read how Google earns its money. After all, it is the profits that Google manages to make that enable Google stocks to rise in the future. Google has a large arsenal of internet services, including YouTube, Gmail and Google +.
All in all, Google mainly earns a lot of revenue by displaying advertisements. These advertisements can be seen within the search engine, among other things. The sponsored links are links for which advertisers pay. When a visitor clicks on them, Google receives an amount of money from the advertisers.
The clever trick behind this is that Google uses a service called Google AdWords: within this service, advertisers can bid against each other for certain search terms. For example, financial terms about borrowing money are sometimes worth more than $10.00 per click.
Meanwhile, even more value is being created within Google by also offering the Google AdSense service. This is a service that allows webmasters to insert advertisements on their website. Google then examines the terms that appear on the site and displays relevant advertisements. Both Google and the webmaster receive a part of the profit that comes from visitors clicking on the advertisements.
These advertisements have ensured that Google shares have a high price. Given the rapid growth of the Internet, the chance of further price gains is certainly not out of the question!
Maximize profits in Google shares
Ultimately, of course, you want to make as much money as possible with your investment in Google. You do this by using your investments wisely. First, it is important to understand that the price fluctuates. Negative news items such as privacy lawsuits cause the price to drop temporarily.
It is, however, possible, by means of a clever trick, to make money with Google shares even in the event of falling prices. You do this by opening a short position on the share; you then earn money with every $1 that the price falls.
It is also wise to use orders when buying Google stocks. You can easily set the value at which you buy or sell CFD shares within Plus500’s software. It is also possible to set your profit or loss on an investment in Google to a certain value.