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How to buy Google shares?

Who doesn't know the web search giant Google? Who doesn't use the leading search engine in their market at least once a day? 

Google stock has experienced an explosion in its listing for 10 years. Today, it presents a genuine investment opportunity. 

Our guide will detail point by point how to buy Google stock and assess its potential in an asset portfolio.

67% of retail investor accounts lose money when trading CFDs with this provider. You have to ask yourself if you can afford to take the high risk of losing your money.

Google is a branch of the Alphabet Inc. group. The company, specialising in digital technologies, has been able to develop its offer by developing new and ever more innovative solutions: connected devices, Youtube video services, the Google Workspace suite, Google Ads, etc.

This diversification of targeted activities, individuals and professionals, has enabled the technology group to garner colossal income for more than a decade, which has had a clear impact on the nominal value of its shares. We will see how the Google listing has evolved since its IPO in August 2004 and see how buying Google stock could represent an opportunity not to be missed.

The Google company comes into Exchange August 20, 2004, NASDAQ, with a current session to close at 54.16 dollars. Google action is experiencing a meteoric rise thanks, in particular at the time, to the takeover of the search engine more innovative and globalising than the leader of the time Yahoo. In just 10 years, the Google share price has been multiplied by more than 10. In fact, on August 22, 2014, the GOOGL share already reached a price of 592.54 dollars. It is clear that this monumental progression does not stop there with the gradual expansion of the activities of the Tech company located in Silicon Valley, notably with the help of numerous takeovers of companies with high potential.

To get an idea of ​​the exponential growth of the company / subsidiary Alphabet Inc, the Google share price over 10 years has increased by +934.22%. As of September 2, 2011, Google shares were trading at $262.42 per unit. As of August 06, 2021, the purchase of a stock costs the trifle of $2,714 (USD) each. Its market capitalisation has reached $ 1,810 billion, thanks to a strategy of full dividend reinvestment in order to support the Google share price and to finance the developments of the Tech company.

How to invest in a Google stock?

Considering the figures given, trading in Google stocks may seem like a no-brainer. But how to take advantage of this windfall? Our guide presents in 4 steps the process to follow to invest with a share on Google via CFD type financial assets. They represent a very interesting opportunity to make profits at any time, whether the Google share price goes up or down, without having a significant capital with the leverage effect.

Step 1: Choose a stock broker

The first step to profiting from the Google Stock Exchange is to choose a broker who offers to trade in stocks. Directly or via CFDs, these are strategic choices that can be combined. We focus our attention on a selection of popular brokers that allow you to trade easily and quickly several types of financial instruments including CFDs on stocks of the largest international companies including Google: eToroXTB.

 

 

The online trading platform has conquered several million users around the world thanks to its innovative social trading platform which is a valuable asset for novice traders. All families of products traded on the stock exchange are represented: forex, stocks, commodities, indices, ETFscrypto currencies (Bitcoin). 

The eToro broker is also very popular for its user friendly interface, its many technical analysis tools and its copy trading features (CopyTrader and CopyPortfolio). Buying Google stocks can be done in seconds in a safe way. We have summarised the main advantages and disadvantages of the eToro broker in the summary table below.

trading on etoro trading platform for beginners

ADVANTAGES

✅     Large catalog of assets

​✅     Regulated broker (FCA, CySEC)

✅     Trading via Title Account or CFD

✅     Social trading

✅     Excellent customer reviews

DISADVANTAGES

❌     Limited technical analysis tools for experienced investors

❌     Spreads on certain high CFDs (ex: Bitcoin and other crypto currencies)

67% of retail investor accounts lose money when trading CFDs with this provider. You have to ask yourself if you can afford to take the high risk of losing your money.

Step 2: Open a trading account

We will detail in this section the different steps to take to open a trading account with the brokers mentioned above:

  1. From the home page of the website or mobile application, click on the open account button;

  2. Fill out the form with personal data: last name, first name, telephone, email, country of domicile;

  3. Choose the type of account (if different options are offered: demo account, limited risk account, standard, professional);

  4. Complete the KYC (Know Your Customer) questionnaire, which is a legal obligation for regulated brokers to prevent the risks incurred by trading in volatile financial products;

  5. Send the documents required to validate the real money account (identity document and proof of address);

  6. Deposit money in the currency of your choice (including euros and dollars);

  7. Start trading in markets around the world.

67% of retail investor accounts lose money when trading CFDs with this provider. You have to ask yourself if you can afford to take the high risk of losing your money.

Step 3: Deposit funds 

Each online broker offers a series of payment methods specific to its operation. The options are more or less varied depending on the partnerships formed. The amount of the minimum amount also varies from broker to broker:

  • eToro: $200 or equivalent currencies with exchange fees;

  • XTB: no minimum deposit required for accounts dedicated to retail investors;
     

The most common ways to deposit money are:

  • Visa / Mastercard credit card;

  • The bank transfer;

  • Digital wallet like Skrill and Neteller;

  • Paypal (eToro);

  • Alternative payment solutions.
     

When the funds are available in the client balance, it is then possible to buy Google stocks on the NASDAQ market.

67% of retail investor accounts lose money when trading CFDs with this provider. You have to ask yourself if you can afford to take the high risk of losing your money.

Step 4: Buy Google stocks

Now let's see how to buy a Google title with eToro. The procedure is very simple.

The trader goes to the Markets section and types the name of the action into the asset search engine: Google or GOOGL.

Then he selects the action by double clicking on it. A dialog box opens with all the necessary information: purchase price, sale price, quantity, etc.

It remains to determine the desired amount of investment and then the form of purchase. Without leverage, nor commission, it is in direct purchase which is automatically added to the ordinary title account as part of a long-term strategy. It is still possible to define a Take Profit level (automatic closing price to cash in profits if it is reached) and Stop Loss (the lowest price tolerated with closing a position if reached to control losses).

In case of short term strategy with eToro, choosing CFD trading is a good option. From the same buy page, the trader defines the quantity of securities desired, the level of leverage (up to 5:1 on stocks) and the levels of Stop Loss and Take Profit. This time, he can choose to buy if an uptrend is seen or forecast, or sell if the forecast is down. The leverage effect makes it possible to multiply the investment without having significant funds, thanks to a credit granted by eToro. Be careful with this mechanism because if the gains are multiplied, the losses are also proportional. The broker has a negative balance protection service that closes the position if the available margin reaches zero.

Why choose Google action?

There are a number of reasons for investing money in shares of Alphabet Inc. Here we summarise the main ones and then recap some key figures of the digital services company.

Since its founding in 1998 by Larry Page and Sergey Brin as a search engine, Google has experienced exemplary growth, which is still the envy of many. The company first knew how to take advantage of the enormous potential represented by online advertising. The Internet is just a vast market where any entrepreneur can promote their services locally, nationally or internationally.

Then Google perfectly anticipated the advent of software solutions and cloud computing (dematerialised storage of computer data). For years, the Silicon Valley company either developed new tools or bought out companies that had the skills necessary for its growth.

Its very aggressive strategy with a long-term vision now allows it to be one of the companies with the largest market capitalisation and to be indispensable to billions of users around the world.

Another reason to believe in Google: its continued diversification. Let's quickly talk about the global success of Youtube, online videos and their integrated advertising revenue. Or the many applications integrated into Google Workspace: Drive for data storage, Google Business for companies, Google Ads, the office suite, extensions, etc. The company has become almost essential for professionals and individuals.

Always on the lookout for new growth markets, the subsidiary of Alphabet Inc (takeover in 2015) saw the potential of Artificial Intelligence (AI). Astronomical sums of money are injected into various projects. At our level, we are taking advantage of this with the first home automation solutions (Google Home connected speaker for example). On a more specialist scale, deep learning is a field of the future that would make it possible to better understand the use of the search engine and improve advertising targeting.

Despite the Coronavirus pandemic, Google has demonstrated its strength with seemingly rock-solid cash flow. All expert opinions even agree on maintaining its profits despite a drop in advertising revenue in the first quarter of 2020.

Finally, the company had already launched a vast campaign to buy back shares. $9 billion in 2018 and $18 billion in 2019 using its cash flow. This strategy is expected to resume after the end of the COVID episode, which will have the effect of maintaining the share price, enshrining investor confidence and facilitating uninterrupted growth for years.

All opinions of financial analysts agree towards more than positive forecasts. Cloud Computing, Deep Learning and Artificial Intelligence are 3 powerful levers for the future of Google and the world. The action should continue to progress. It has already beaten predictions made in 2020, which announced a record price of around $1,500 per unit. We can see that this price has been greatly exceeded ($2,714) despite a still complicated health situation.

All of these reasons explain very well why investing your money in stocks in the Google Group represents an opportunity with enormous potential. 

Google Company Information

important info on the google company

Google stock dividends 

As we indicated previously, the Alphabet group of which the Google company is a part has a strict policy regarding its dividends. Indeed, like the other tech giants of GAFAM, namely Facebook, Microsoft, Apple and Amazon, Google does not pay any dividends to its shareholders. The company prefers to transfer all of it into its economic model in order to:

  • Autonomously finance its research and development projects;

  • Consolidate its market capitalisation by carrying out a massive share buyback.
     

It is therefore not an action to be added for the purpose of obtaining passive income through dividends. Buying Google stock is a long-term commitment with a strong conviction for uninterrupted growth for several years. The statistics have shown without a shadow of a doubt that the company is very well managed. At the same time, its turnover and profits continue to increase. The amount of dividends benefits directly from this, which regularly infuses new funds to consolidate the services in place and develop future applications. Ultimately, this also benefits shareholders.

67% of retail investor accounts lose money when trading CFDs with this provider. You have to ask yourself if you can afford to take the high risk of losing your money.

FINAL CONCLUSION, SHOULD YOU BUY GOOGLE STOCK?

There is nothing to suggest that buying Google stock is a high risk investment. All the indicators, which we analysed in our opinion, show us that investing your money in the high-tech company has many advantages.

Beyond its financial solidity, which has been strongly verified during the COVID period, Google is demonstrating time and time again that it is one of the indisputable leaders in the digital sector. Its colossal investments in new fields of application such as Artificial Intelligence or Cloud Computing demonstrate its ambition to best anticipate the future needs of consumers. 

His experience in digital marketing gives him a place of choice in the daily lives of billions of users. Its ever-growing presence (thanks to bold acquisitions of promising companies) in the home automation, connected and autonomous devices and professional services sectors are the future springboards of a world where all human tasks will be accompanied by an intelligent machine. or a Big Data system.

All financial analysts predict continued growth in the share price in the years to come. The price of a share of the Tech company has already beaten the best predictions for the year 2020 and it is repeated in 2021. 

It is obviously important to carefully choose your stock broker to buy Google securities in order to limit fraud and brokerage fees as much as possible. For example, opting for eToro is a strategy that can pay off thanks to its 0% commission policy on popular companies on the stock market and its social trading platform highly appreciated by traders.