Which Google Stock Should You Invest In: GOOGL Or GOOG?

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GOOGL (Class A) comes with voting rights, allowing you to vote on company decisions like electing board members. On the other hand, GOOG (Class C) has no voting rights but usually trades at a similar price to GOOGL. For most investors, the voting power of GOOGL is not significant enough to affect long-term returns, so you can choose either based on your personal preference regarding voting or simply go for the stock with the lower price at the time of purchase.

An investment in Google isn’t really questionable, especially considering its consistent growth and leadership in the tech industry. However, choosing between Alphabet's two types of publicly traded shares — GOOGL (Class A) and GOOG (Class C) — can be confusing. In this article, we’ll help you understand the differences and provide a step-by-step guide for choosing the right stock for your investment goals.

Choosing between GOOGL and GOOG

GOOGL (Class A) stock comes with voting rights — meaning you can vote on corporate matters such as electing board members and approving major company decisions. Each GOOGL share gives you one vote. GOOG (Class C) shares, on the other hand, do not come with any voting rights.

Should you care about voting rights?

For most retail investors, the voting power offered by GOOGL won’t significantly affect their investment. Major shareholders, such as Alphabet insiders who hold Class B shares (which have ten votes per share), control the bulk of the voting power. If you’re an everyday investor, the absence of voting rights in GOOG shares is unlikely to impact your returns.

Company background

Google was founded in 1998 by Larry Page and Sergey Brin, and it quickly became the world’s most popular search engine. In 2015, Google restructured under the parent company Alphabet to better manage its growing list of businesses, from YouTube and Android to self-driving cars and cloud computing.

Alphabet's market dominance and diverse revenue streams ensure its continued success, making it one of the most valuable companies in the world. Investors who choose Alphabet stock are betting on the future of technology, AI, and digital transformation.

Alphabet has three classes of shares:

GOOGL (Class A): Publicly traded with 1 vote per share.
GOOG (Class C): Publicly traded with no voting rights.
Class B: Held by insiders like founders and employees, with 10 votes per share, and not publicly traded.

While GOOGL shareholders can vote at company meetings, their influence is usually minimal due to the controlling power of Class B shareholders. GOOG shareholders, meanwhile, enjoy the same financial benefits without any voting power.

Price differences between GOOGL and GOOG

Historically, the price difference between GOOGL and GOOG has been minimal. Any fluctuations typically result from temporary market factors, so for most investors, the choice between these two stocks comes down to personal preference about voting rights rather than price.

Check current stock prices

Before investing, compare the real-time prices of GOOGL and GOOG shares on major stock exchanges like NASDAQ. Both stocks are highly liquid, meaning they can be easily bought and sold on public markets.

Long-term investment focus

Alphabet’s stock has shown consistent long-term growth due to its leadership in search, advertising, and its push into innovative technologies like cloud computing and artificial intelligence. Whether you choose GOOGL or GOOG, both stocks are well-suited for long-term investors.

Factors to consider for beginners

Understand the voting rights
For beginners, the lack of voting rights in GOOG isn’t a deal breaker. Most retail investors hold too few shares for their votes to make a difference in corporate decisions.
Fractional shares for small investors
If the price of Alphabet stock seems high, you can buy fractional shares from brokers that offer the facility. This allows you to start small and grow your investment over time.
Long-term growth focus
Beginners should focus on Alphabet’s long-term growth potential rather than short-term fluctuations. Alphabet’s dominant position in the tech industry makes it a stable choice for long-term investors.

Pros and cons of investing in Google stocks

Market leader. Google is the dominant search engine and a leader in digital advertising.
Revenue growth. Alphabet has shown consistent revenue growth, thanks to its diverse business lines.
Strong financials. Alphabet boasts a strong balance sheet and significant cash reserves, making it a resilient investment.

High share price. Alphabet's stock price may be prohibitive for smaller investors, though fractional shares can mitigate this.
Limited voting influence. Even with GOOGL, retail investors have limited impact on corporate governance.
Short-term volatility. Alphabet's stock can experience sharp price swings, especially in response to market news.

How much can I earn by investing in Google stock?

Since its IPO in 2004, Google’s stock has delivered significant returns to long-term investors. For example, a $10,000 investment in Google in 2004 would be worth more than $1 million today. While past performance is not indicative of future results, Alphabet’s diverse revenue streams and dominance in the tech industry position it for continued growth.

<span translate="no">Google</span> historical performance

Google historical performance

How to buy Google stock: a step-by-step guide

1. Choose a broker. Find a reliable online broker. We have researched the top options and prepared a comparison table below for you to make a choice.

Best brokers to Invest in GOOG and GOOGL
	Interest rate	Basic stock/ETF fee	Min. stock/ETF fee	Open an account
eOption		$3 per trade	$3 per trade	Open an account Via eOption's secure website.
Wealthsimple	1	Zero Fees	Zero Fees	Open an account Via Wealthsimple's secure website.
Revolut	0,15-1	Standard, Plus, Premium, and Metal Plans: 0.25% of the order amount. Ultra Plan: 0.12% of the order amount.	£1.00 in the UK, €1.00 in the Eurozone	Study review
Interactive Brokers	4,83	0-0,0035%	$1,00	Open an account Your capital is at risk.
SoFi Invest	0,01	Zero Fees	Zero Fees	Study review

2. Open a brokerage account. Set up an account with the chosen broker.

3. Deposit funds. Add funds to your account.

4. Buy alphabet shares. Purchase GOOGL or GOOG shares based on your research.

5. Monitor your investment. Regularly review your portfolio and make adjustments as necessary.

Risks and warnings

Market volatility
As with any stock, Alphabet shares are subject to market volatility. Short-term investors need to be prepared for fluctuations.
Regulatory challenges
Alphabet is frequently under scrutiny from regulators regarding its data practices, antitrust issues, and monopoly status. Any adverse rulings could negatively affect its stock price.
Regulatory pressure on AI and data. Governments are cracking down on how companies use personal data, and Google’s AI-driven ad business could take a hit from new privacy laws, especially in Europe.
Declining search dominance. Fewer people are Googling everything. AI-based alternatives and social media searches are chipping away at Google’s search business.
Emerging market risks. Google’s growth in places like India is uncertain due to unpredictable regulations and competition from local players.
Costly innovation bets. Google’s investments in futuristic projects like Waymo are exciting but risky, with long timelines and no guarantee of payoff.
Ad market saturation. Digital ad space is crowded. Platforms like TikTok and Instagram are taking away younger audiences, which could shrink Google’s ad revenue over time.

Focus on the stock that’s priced lower

For most retail investors, the difference between GOOGL and GOOG is minimal. Both stocks track the performance of Alphabet, and historically, they’ve moved in almost perfect sync. The decision ultimately comes down to whether you care about participating in shareholder votes. If you’re planning on holding these shares for the long term, then either stock can be a solid investment.

If you’re new to investing or prefer simplicity, I’d suggest focusing more on the stock that’s priced lower at the time you’re ready to buy. Alphabet’s core business is strong, with its dominance in digital advertising, cloud computing, and new ventures like AI offering long-term growth potential. Whether you go with GOOGL or GOOG, what matters more is your timing, your investment horizon, and your ability to ride out short-term market fluctuations. Long-term, Alphabet has proven to be a resilient and profitable stock in my experience.

Also, don't overlook the basics — stay informed about the company's financial health, follow quarterly earnings reports, and keep an eye on major news that might impact stock performance. Diversification is key too; even with a tech giant like Alphabet, it’s always smart to spread your risk across different sectors.

Conclusion

Both GOOGL and GOOG represent sound investment opportunities in Alphabet, one of the most innovative and financially secure tech companies in the world. While the decision between the two boils down to voting rights, both stocks offer robust growth potential for long-term investors. Whether you’re a beginner or an advanced trader, consider your priorities and long-term goals when choosing the right stock for your portfolio.

FAQs

Can I hold both GOOGL and GOOG in my portfolio?

Yes, you can hold both GOOGL and GOOG in your portfolio. Some investors do this to balance their holdings, especially if they are indifferent to voting rights and want to take advantage of price fluctuations between the two stocks.

Will I receive dividends if I invest in either GOOGL or GOOG?

As of 2024, Alphabet has not traditionally paid dividends, but the company announced its first dividend payout in 2024, which applies to both GOOGL and GOOG shareholders. Future dividends are expected to follow this pattern, so both types of stock will receive dividends.

Can I switch from GOOGL to GOOG or vice versa after purchasing?

Yes, you can sell your GOOGL shares and purchase GOOG, or vice versa, through your brokerage platform. However, keep in mind that transaction fees and the current market price may impact your switch.

Why does the price of GOOGL and GOOG differ slightly at times?

The price difference between GOOGL and GOOG is typically due to demand for voting rights associated with GOOGL. While the difference is often minimal, it can fluctuate slightly based on investor sentiment.

Team that worked on the article

Parshwa is a content expert and finance professional possessing deep knowledge of stock and options trading, technical and fundamental analysis, and equity research. As a Chartered Accountant Finalist, Parshwa also has expertise in Forex, crypto trading, and personal taxation. His experience is showcased by a prolific body of over 100 articles on Forex, crypto, equity, and personal finance, alongside personalized advisory roles in tax consultation.

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Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.

As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.

Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).

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