The GOOG vs GOOGL Stock Shootout (2024)

FAQs

Should I buy class A or C shares? ›

Investors generally should consider Class A shares (the initial sales charge alternative) if they expect to hold the investment over the long term. Class C shares (the level sales charge alternative) should generally be considered for shorter-term holding periods.

Because GOOGL (class A) stock owners have voting rights, the shares tend to cost slightly more than GOOG (class C). However, the price difference is tiny — often less than $1, which is under 0.1% of the stock price. It also frequently happens that GOOG shares temporarily cost more than GOOGL shares.

So what exactly is the difference between the two and which one should you buy? There is only one difference: GOOGL stocks grant voting rights to shareholders, offering a voice in company decisions, while GOOG stocks don't. So you should make your choice accordingly.

Price and voting rights are the only differences between GOOG and GOOGL shares of Google. Normally shares that have voting rights are more valuable than shares without voting rights. However in the case of Google stock the non-voting shares currently cost more per share.

Class C shares would work best for investors planning to keep the fund for a limited, intermediate period, optimally more than one year but less than three. That way, you hold on long enough to avoid the CDSC, but not so long that the high expense ratio will take a major toll on the fund's overall return.

GOOG shares are the company's Class C shares. Class C shares give stockholders an ownership stake in the company, just like Class A shares, but unlike common shares, they do not confer voting rights on shareholders. As a result, these shares tend to trade at a modest discount to Class A shares.

But Google's parent company, Alphabet, could also be a long-term winner. With shares up by a healthy 59% over the last 12 months, Alphabet (GOOG -1.35%) (GOOGL -1.28%) stock is posting a healthy recovery after the slump it experienced in 2022.

According to our Alphabet Inc. stock prediction for 2030, GOOG stock will be priced at $ 515.37 in 2030. This forecast is based on the stock's average growth over the past 10 years.

And since the market capitalization — the number of shares outstanding times the share price, or the value of the company — remains the same before and after a split, there is usually only a small advantage, if any, to purchasing a particular stock just before a split.

Amazon and Costco are exceptionally well-managed companies poised for long-term success and worthy of every investor's portfolio. That said, at this moment, Amazon appears to be the better buy, especially when considering the valuation. Amazon trades at 42.8 times free cash flow, lower than its 10-year median of 62.9.

What is the true value of GOOGL stock? ›

As of 2024-06-09, the Intrinsic Value of Alphabet Inc (GOOGL) is 208.85 USD. This Alphabet (Google) valuation is based on the model Discounted Cash Flows (Growth Exit 5Y). With the current market price of 174.46 USD, the upside of Alphabet Inc is 19.7%.

The founders wanted a new class of stock. so that they could always maintain. some control over Google's voting decisions, and they usually trade close to the same price. Some people prefer the shares with votes.

Let us understand the disadvantages of this class of shares through the discussion below. These shares are only reserved and offered to the company's management; they are scarce. These shares are not available to the public. It means an average investor cannot invest in them.

For example, a company may have Class A shares that trade for hundreds of thousands of dollars. The company may then issue Class B shares at a much lower price since many investors will not be able to afford a Class A share. This makes investing in the company much more accessible.

What are the advantages of investing in Class C shares? Class C shares offer flexibility in redemption, lower upfront costs, and accessibility through a level load fee structure. They may be suitable for short-term investors or those prioritising liquidity and flexibility in their portfolios.

The difference between these two is voting rights. Class C shares hold no voting rights, whereas Class A shares hold one vote per stock. All else equal, a Class C share is inherently worth slightly less than a Class A share. The price difference is determined in the open trading market.