Alphabet Inc., a multinational company based in the United States, develops and operates various online services and artificial intelligence technologies, including Google. Recently, it has seen an increase in revenue growth from areas such as AI, cloud services, and online advertising, and has a stable corporate structure and outlook. It is listed on NASDAQ and issues two types of stocks, “A” and “C” classes. We will examine these aspects in more detail through an Google Stock Analysis.

Google Stock Analysis
Google Stock Analysis

Alphabet operates various internet services and products, including Google search, advertising, maps, app store, YouTube, and Android, with advertising revenue being its main source of income. Additionally, Alphabet plays a leading role in developing and researching new technologies such as machine learning, artificial intelligence, autonomous driving, virtual reality, and cloud computing.

Recently, Alphabet has shown positive results with increased advertising revenue due to the surge in internet usage caused by the COVID-19 pandemic. Furthermore, through continuous investments in autonomous driving, cloud computing, and artificial intelligence, it has been able to increase its technological capabilities and market share, and is hinting at the release of new products and services.

While Alphabet is a large technology company with expected stable performance and continuous growth, it is currently facing regulatory issues, such as being under investigation by the competition watchdogs of major countries. Additionally, the company’s growth potential may slow down due to changes in the industry structure and the presence of competing companies. Therefore, stock investment always involves risks, and sufficient research and analysis are necessary before making any investment decisions.

Difference between Class A and Class C

There are two types of Alphabet stock, Class A and Class C, with the main difference being the voting rights.

Google Stock Analysis

Class A stock is a common stock that has one vote per share. In contrast, Class C stock is a non-voting stock, which has the same value as Class A but no voting rights, so shareholders cannot directly participate in the decision-making process of the company.

Due to this difference, Alphabet’s founders Larry Page and Sergey Brin hold Class B shares, which have more voting rights than Class A. Therefore, Larry Page and Sergey Brin are the effective controllers of Alphabet.

In the stock market, Class A stock generally has a higher value than Class C. This is because Class A stock has voting rights, which can have a greater impact on determining the direction of the company’s management.

Key Businesses of Google Parent Company Alphabet

Alphabet Inc. Class A operates in various fields of business. We will describe some of these businesses in detail below.

Google Stock Analysis
  1. Search Engine: Google Search Engine is one of Alphabet’s core businesses. Through this, users can quickly search for the information they need on the internet. It also generates revenue through advertising.
  2. Advertising: Google generates a significant amount of revenue through advertising. It provides advertising on its search engine, YouTube, app store, etc., allowing advertisers to promote their products.
  3. Cloud Computing: Alphabet provides cloud computing services through Google Cloud Platform (GCP). This allows businesses to purchase infrastructure, platforms, and software to operate their businesses.
  4. App Development and Store: Google Play Store offers applications that run on the Android operating system. This enables developers to sell their apps and allows users to download and use them.
  5. Artificial Intelligence: Alphabet is developing artificial intelligence and machine learning technologies. It utilizes these technologies through services such as Google Assistant, Google Translate, and Google Photos.
  6. Other Businesses: Alphabet also engages in various other businesses. Some of these include autonomous driving cars, smart speakers, smart home devices, robotics, and more.

Alphabet, which is pursuing various businesses as mentioned above, is continuing its growth through innovative technologies. These businesses are expected to generate stable profits in the medium to long term.

Unique Advantages of Google Stock

There are various advantages to Alphabet Inc Class A.

Google Stock Analysis

  1. Alphabet Inc. holds various companies including Google as subsidiaries. Google is one of the most popular search engines worldwide, providing various services such as web search, online advertising, cloud computing, social media, and mobile operating systems. It also conducts continuous research and development in various fields such as YouTube and Waymo, an autonomous driving car development company.
  2. Alphabet Inc. has high technological capabilities across various industries. It launches new products and services using innovative technologies such as artificial intelligence, big data, machine learning, and autonomous driving, which greatly enhances its competitiveness.
  3. Alphabet Inc. maintains a stable financial status with high profitability and a large amount of cash and cash equivalents. This provides room for various investments for the company’s future growth.
  4. Alphabet Inc. has achieved high performance in various fields. It has achieved various results in each field, including search, advertising, cloud, and YouTube, contributing to its profitability and stock price increase.

Due to these advantages, Alphabet Inc. Class A is evaluated as a highly stable and potentially growing company.

Points to consider when investing in Google stocks

The following are points to consider when investing in Alphabet Inc Class A stock.

Google Stock Analysis

  1. Market Volatility: As a tech company, Alphabet Inc Class A stock is subject to high market volatility. In particular, with increasing competition in the tech industry, the stock price has become even more volatile. Therefore, it is important to predict market volatility and develop a stock investment strategy.
  2. Competition: Alphabet Inc’s main source of revenue is through Google search engine and online advertising. However, with a high market share of the Google search engine, the emergence of competing companies is expected, and it is necessary to closely observe new technological innovations and the profitability of competing companies.
  3. Policy changes: As a tech company, it is necessary to be sensitive to legal and regulatory issues such as data privacy and copyright. Alphabet Inc also faces risks due to policy changes, so it is necessary to monitor news related to changes in the company.
  4. Quarterly earnings reports: Alphabet Inc announces its earnings report every quarter, providing insight into the company’s financial status and profitability. Therefore, when investing in stocks, it is necessary to consistently check the earnings report released every quarter.
  5. Diversification in various business fields: Alphabet Inc is expanding into various business fields beyond the Google search engine and online advertising. Therefore, it is important to evaluate Alphabet Inc’s portfolio by monitoring the growth and profitability of these business areas.

Google Stock Analysis

Let’s take a brief look at Google stock analysis. Alphabet, Google’s parent company, operates in various fields such as internet search, advertising, cloud computing, software, and hardware. Alphabet issues both Class A and Class C shares in the US stock market, and the difference between the two stocks is in voting rights. Class A shares are common shares with one vote per share, while Class C shares are common shares without voting rights. As a result of this difference, executives of Alphabet-affiliated companies, including Google, tend to prefer Class A shares.

Google Stock Analysis

The current stock price for Alphabet Inc. is stable, ranging from around $3,100 to $3,200 per share, and the stock price has fluctuated between $1,200 and $1,800 over the past year. According to analysis, Alphabet is considered to have strong competitiveness based on its dominant position in the advertising market, the power of Google search engine, and future growth potential.

In recent years, Alphabet has made large investments in areas such as artificial intelligence (AI), cloud computing, and big data analysis. In particular, it competes with Amazon Web Services and Microsoft Azure in the cloud computing sector. These investments are one of the factors that promote Alphabet’s technological development and innovation, and increase its potential for future growth.

Google Stock Analysis

Other securities firms are evaluating Alphabet’s stock as ‘buy’ or ‘neutral.’ For example, Goldman Sachs has a ‘buy’ rating on Alphabet’s stock with a target price of $3,800. Morgan Stanley predicts that Alphabet’s stock value will be 15% higher than the current price. These analytical results indicate a positive outlook for Alphabet’s long-term growth potential and future prospects.

Google stock investment opinion

Alphabet Inc Class A stock is currently one of the most stable and growth-oriented companies among global IT firms. However, due to the risks of fluctuation in the stock market, it is important to make a comprehensive assessment from a mid-to-long-term perspective.

Google Stock Analysis

First of all, Alphabet Inc Class A is a company that owns several popular services including Google, and has high potential for future growth. In particular, its main products such as Google search engine, YouTube, Google Cloud, and Android are still showing rapid growth. It also has leading technology capabilities in areas such as artificial intelligence and autonomous driving.

The long-term outlook for Alphabet Inc Class A stock, as determined through analysis of Google stock, is very positive. The global IT market is expected to continue to grow, and Alphabet’s main products are expected to continue to develop. Therefore, in the medium to long term, it can be said that there is a strong buy recommendation for Alphabet Inc Class A stock.

However, such recommendations always come with risks. As there is a risk of fluctuation in the stock market, investors should make their own investment decisions based on active research and analysis. Therefore, including Alphabet Inc Class A stock in a portfolio can be an active investment decision, and it is considered to have a strong buy recommendation.

Amazon.com Stock Outlook, Financial Analysis, and Reasons for Recommendation

Growth Prospects of Microsoft, NASDAQ Recommended Dividend Stock