Google Stock Analysis - is Google Stock a Good Buy? Best Investments Series | Summary and Q&A

TL;DR

Alphabet Inc., also known as Google, is a tech company with two main segments - Google and other bets. Google stock has two ticker symbols, GOOG and GOOGL, representing different share classes with different voting rights. Despite a dip in net income in 2017, Google has shown strong revenue and profit growth over the past five years.

Key Insights

• 👨‍💼 Alphabet Inc. has two main business segments: Google and other bets.
• ✋ Revenue from Google properties is significantly higher than revenue from Google Network member properties.
• 🙃 Alphabet Inc. has three stock classes, with Class B shares owned by the founders and having more voting power.
• 💪 Google has shown strong revenue and profit growth, with a dip in net income in 2017 due to changes in US tax laws.
• 🔙 Class A and Class C shares are traded at similar prices despite Class A having voting rights because Class B shares hold majority voting power.

Transcript

hi I'm Jimmy in this video we're looking at alphabet Incorporated ticker symbol goog and googl yes they have two but we'll come back to that in a minute okay our goal with this video is to try to take a basic look at alphabets business and then try to see if we can determine the fair value of Google's stock okay now now I'm sure we all know that al... Read More

Questions & Answers

Q: Why does Alphabet Inc. have two different stock tickers?

Alphabet Inc. has two stock tickers, GOOG and GOOGL, to represent different share classes. GOOG represents Class C shares, which have no voting rights, while GOOGL represents Class A shares, which have one vote per share.

Q: What are the main differences between Google properties and Google Network member properties?

Google properties include Google.com, YouTube, Google Maps, and the Google Playstore, while Google Network member properties generate revenue from external sites using platforms like AdMob or Google Adsense. Google properties generate significantly higher revenue compared to Google Network member properties.

Q: How has Alphabet Inc.'s revenue and profit growth been over the past five years?

Alphabet Inc. has shown strong revenue and profit growth over the past five years, with a compounded annual growth rate of approximately 20% in revenue. However, there was a dip in net income in 2017 due to changes in US tax laws.

Q: Why are Class A and Class C shares traded at similar prices despite Class A having voting rights and Class C not having any voting rights?

Class B shares, owned by the founders, Larry Page and Sergey Brin, have significant voting power, making the voting rights of Class A and C shares relatively insignificant. Therefore, the market does not differentiate significantly between the two share classes.

Summary & Key Takeaways

• Alphabet Inc., or Google, has two main business segments: Google and other bets.

• Google's revenue is primarily generated from Google properties such as Google.com, YouTube, Google Maps, and the Google Playstore, as well as from external sites through the Google Network member properties.

• Alphabet Inc. has three stock classes, with Class A and Class C shares publicly traded and Class B shares owned mostly by the founders, Larry Page and Sergey Brin. Class B shares have 10 votes per share, while Class A shares have one vote, and Class C shares have no voting rights.