Stock fans will know about Alphabet Inc. On stock tracking at Investing, Alphabet Inc. is one of the top stocks on the global stock list after Apple.
At the time of writing Alphabet Inc’s share value, is 2,229.76, up +51.60 or +2.37% today. Alright, let’s find out more about Alphabet Inc. Why is this one of the favorite stocks next to Apple or Tesla?
Contents
Alphabet inc. companies overview
All internet users we believe are familiar with the term or name of Google.
In fact, whenever people are looking for information about something, it often becomes a meme to ask Mr. Google.
Alphabet Inc. is a private company formed by Google, which later became the parent of all other Google subsidiaries.
Larry Page, the founder of Google announced a restructuring plan by moving all of Google Inc’s subsidiaries. such as Google Inc., Nest Labs, and Calico, as well as other business entities such as Google X, Google Capital, and Google Ventures. to Alphabet Inc. The plan was written on the Google blog in 2015.
Alphabet Inc. The company is headquartered in Mountain View, California, the United States, led by its founders, Larry Page, who serves as CEO, and Sergey Brin, who serves as president.
Alphabet Inc stock. commonly traded under the symbols “GOOG” and “GOOGL” which were previously the stock symbols of Google Inc. listed on the NASDAQ.
The choice of the word Alphabet itself was expressed by Larry Page on the grounds that this is a series of letters that make up language. And this also means Alpha-bet means a bet, and Alpha means the return on investment above target.
On a note, Larry Page revealed that Google prefers long-term targets that are different from other companies that can predict their targets on a quarterly, short-term basis
Alphabet Inc. business description
In his description of Google, Larry Page wrote that Google is not a conventional company, further he wrote a description of the company by involving a smaller bet area in Google’s business operations, although it is a bit strange when compared to the current business.
Larry Page founded Alphabet which is a collection of companies, primarily Google, by making it more streamlined with companies that are quite far from the internet. He provides examples of what it means by far are Life Sciences, which focuses on glucose-sensing contact lenses, and Calico, which focuses on longevity.
As a holding company from Google, Alphabet is a global technology company that has proven its products worldwide, such as search engines, Google maps, calendar, ads, Gmail, Google Play, Android, google cloud, chrome, and YouTube.
Alphabet also develops hardware such as Pixel phones, smartwatches, and Google Nest home. While online advertising is famous for AdSense, internet, TV services, licensing, and research.
What companies are owned by Alphabet inc.?
Alphabet is a conglomerate that has several subsidiaries, the largest being Google. From the Wikipedia page, there are 12 companies that are subsidiaries of Alphabet Inc.
- Calico, is a company that focuses on human health.
- CapitalG, a private equity firm.
- DeepMind focuses on artificial intelligence.
- Google, focuses on internet service.
- Google Fiber, internet access uses fiber.
- GV, venture capital for a technology company.
- Intrinsic, focus on robotic software development.
- Isomorphic Labs focuses on drug recovery.
- Verify, focuses on human health.
- Waymo focuses on autonomous driving.
- Wing focuses on drone-based delivery of freight.
- X development focuses on research and development of Moonshot technologies.
Alphabet is known to be a company that has acquired more than 200 companies from 2001 – to 2022. Even in the list of companies acquired by Alphabet as many as 250 companies.
At first, the Google group was a company acquired under the brand name Dejanews that ran the Usenet business, which later changed to Google Groups. Reference from Wikipedia.
When did Alphabet Inc. go public?
Alphabet is a company formed by Google founder Larry Page, of which Google Inc. was founded in 1998. But then Alphabet became the parent company of Google. Google Inc. started an IPO in 2004 which later issued shares with the GOOG symbol on NASDAQ Global.
In 2014 Google issued class C shares also with the GOOG symbol on the Nasdaq Global Select Market. but in 2015 class C shares were relabeled to class A with the ticker symbol GOOGL 2015. The current CEO of Alphabet is Sundar Pichai taken over from Larry Page in 2019.
When did Alphabet Inc. buy Google?
Alphabet Inc. is essentially a restructuring of the company Google Inc. which was previously formed.
On August 10, 2015, the Co-founder of Google Inc. Larry Page, announced the formation of a new holding company Alphabet Inc. which was then officially established on October 2, 2015.
Thus it can be said that Alphabet Inc. is a new face for Google, where the company that was formed later became the parent company of the previous subsidiary of Google Inc.
What does Alphabet Inc. do?
Alphabet is the third-largest company in the United States, competing with Apple, and Microsoft, whose business segments include Google Services, Google Cloud, and Other Bets.
Maybe, smartphone users, many of them are familiar with products from Google, namely Android, Chrome, Google Maps, and Youtube. All the devices that support that infrastructure are Alphabet’s doing.
Larry Page himself describes Alphabet as a company that focuses more on long-term business with what he calls bets, so there are no quarterly predictions.
Not only exploring the internet of technology, Alphabet Inc has also acquired many companies that are far beyond the internet of technology such as in the field of human health.
Alphabet also provides a Google Cloud platform where developers can test applications and deploy applications on the infrastructure.
Also, Alphabet provides Google Workspace, such as Gmail, Drive, Google Meet, Docs, and others.
Does Alphabet Inc. pay dividends?
Many companies pay dividends to shareholders, but not Alphabet Inc.
Most investors buy shares that are a reflection of the company’s ownership in the hope of getting dividends from the company. Companies that pay dividends to shareholders, prove the stability of the company’s revenue itself.
But as Larry Page explains, Alphabet is not a conventional company, there are no quarterly forecasts, and it’s a long-term profit. Although possible for the revenue generated by Alphabet Inc. to pay dividends, so far there seems to be no hope of that at present.
This is still a public debate between the proponent of dividends and those who are anti-dividends, each with their own reasons.
Proponents of dividends argue that Alphabet’s pay dividend will not change the stock price because it does not change the structure of the company. However anti dividend argument, is that if dividends need to pay double tax, from the company and shareholders, so sometimes companies must buy back the stocks.
While neutral investors argue that it is still possible in the future Alphabet will pay dividends to shareholders. In the revenue report published on April 26, 2022, total revenue in 2022 increased by 23% from 2021. From 55.314 in 2021 to 68.011 in 2022.
How many employees does Alphabet Inc. have?
Citing to Macrotrend, the number of employees in Alphabet since 2010 rise gradually until 2021.
- 2010, total employes 24.400
- 2011, total employes 32.467.
- 2012, total employes 53,861.
- 2013, total employes 47.756.
- 2014, total employes 53.600.
- 2015, total employes 61.814.
- 2016, total employes 71.053.
- 2017, total employes 80.110.
- 2018, total employes 98.771.
- 2019, total employes 118.899.
- 2020, total employes 135.301.
- 2021, total employes 156.500.
Referring to statistical data from Investopedia, in 2021 Alphabet had 301,084,627 outstanding class A (GOOGL) shares as of July 20. Meanwhile, class B shares have 45,501,786 outstanding shares. And class C shares (GOOG) have 320,168,491 shares outstanding.
Meanwhile, the latest Q1 2022 report published on April 26, 2022, in a press release, shows the total outstanding shares of 658,763 with details of Class A amounting to 300,763, Class B amounting to 44,404, and Class C amounting to 313,596 shares issued and outstanding 61,774 62,832 Accumulated other comprehensive income,
The reported top insider trader on May 9, 2022, is John L. Hennessy Non-Executive Chairman of the Board. Reference.
AMERIPRISE FINANCIAL INC has 2,004,033 shares owned. Taken from Whalewisdom, Sergey Brin had 37,600 shares as of May 12, 2022. Data were taken from Morningstar.
Is Alphabet Inc. a good investment?
Alphabet Inc. or better known as Google is a conglomerate company and the third-largest in the United States. Alphabet’s stock, which was first launched in 2004, is only $50. But now Alphabet’s stock value has reached $2,106.55.
Although Alphabet is a company that does not pay dividends to shareholders, there are several reasons why analysts believe that Alphabet is a good stock.
By 2021 the company had managed $67 billion of its $257 billion in revenue into free cash flow. Several reasons that may become the reason to buy Alphabet stocks are:
Google and Youtube still become the market leaders.
Google and Youtube are still advertising media that are able to get a global market. The Google Search engine gets 85% market shares while Youtube gets 76% market shares. While Google search gets 36% YoY growth. Meanwhile, Youtube is getting 25% YoY growth per quarter 4 in 2021.
Google cloud starting to shine
Although it has to compete with several competitors in the field of cloud services such as Amazon Web Services and Microsoft Azure. But Alphabet is not a lackluster company.
Its revenue has grown and started to shine during Q4, with 45% year-over-year growth to $5.5 billion and increasing at 47% throughout 2021.
Although Google Cloud is still working with infrastructure expansion at a cost of $890 million, Alphabet has not given up on cloud services.
Conglomerate company
Larry Page describes Alphabet as not a conventional company. This makes Alphabet Inc unique. whose shareholders are from conglomerates.
Even though it is like a bet, it is proven that many products from Alphabet have received public responses from various countries in the world.
Past stock history performance is good
In the long term, Alphabet Inc’s stock value tends to increase, drawing a trend line, even though the stock price fluctuation in 2022 is very volatile. But overall the trend is an uptrend in the long term.
Is Alphabet Inc. an excellent stock to buy now?
Globally, the world economy is still in the recovery stage after the threat of Covid, but currently, the heated geopolitical tension due to the Russia vs Ukraine war has become an important issue for investors.
Since Russia attacked Ukraine in its special military operations last February, the value of GOOGL’s stock has started to decline. Even though there was an upswing in March, after that the continued decline to May is still ongoing.
The low GOOGL price of 2037 drew back low in February 2021. Investors may still be worried about the global situation as well as the high inflation that hit the United States.
Investors may still be waiting for a reversal wave to become the turning point of a long-term uptrend. Because there are still many analysts who predict Alphabet is a good stock in the long term.
Although the company is running, it is not without obstacles, such as regarding regulations in other countries such as Europe. but investors believe Alphabet will be able to settle smoothly.
Alphabet inc A vs C
There are two known ticker symbols for Alphabet Inc, GOOG and GOOGL. The GOOG tick symbol represents class C stock, and GOOGL represents class A stock.
Class B shares are owned by the co-founder, company chair, and a few other directors, of which class B shares are not publicly traded.
What distinguishes stock Class A and C is the voting power. In 2014 Alphabet split stocks into classes A and C and B. Class A got one vote per share, Class B got 10 votes per share and Class C didn’t get a vote.
Alphabet annual report
Annual reports are important data for stock investors to track how the company is performing. Alphabet is a conglomerate company that always makes updated reports through their official website abc.xyz.
Final thought
Alphabet Inc. is a company formed by the founders of Google which is the parent of Google itself. Alphabet shares traded on the NASDAQ have two ticker symbols GOOG and GOOGL. Which respectively represent class C shares and class A shares.
Google has proven that this company brings many changes to human civilization. Google Map, Android, and many more well-known Google products to the public.
Note: this article is for information only and is not investment advice or solicitation. Forex, CFDs. Crypto trading is risky. Each investor is responsible for their investment.
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