When investing in Alphabet (NASDAQ: Google), should you purchase GOOG or GOOGL? It is a question on the lips of each potential buyer of Alphabet’s stock, and it is not without some controversy.
To many investors, Google has come to represent everything they do not want to do: an aggressive company that seem willing to try new products at a rapid pace, but that is not willing to invest much in research and development. While this is certainly not the case with Google, it is also not the case with Google’s parent company, and there are a number of factors that can be considered when assessing whether a particular investment in Alphabet is worthwhile.
To determine if investing in Google is worth your while, it is important to understand what you are actually paying for when you invest in the company. There are several different types of companies that can be classified as “Tech Giants” and each is designed to provide an entire online platform to offer products and services.
For instance, there are companies like Alphabet Inc. (NASDAQ: GOOG) and Google Inc., Alphabet’s Internet search engine division. These two companies will focus on providing search technology and internet access for a wide variety of consumers. Their products are often developed by third parties. They are designed to appeal to people who are interested in shopping online and those who would prefer to use search as an initial step in their search for information.
An example of another type of company that is related to Google are websites such as Amazon (NASDAQ: AMZN). These companies, like Alphabet, focus on providing an online platform. They usually develop their products internally and then allow others to provide them with a platform on which to sell their products. In essence, this means that the product will be sold directly to consumers.
While these types of companies may seem similar to Google and its competitors, they have very different goals and are certainly different from one another when it comes to profitability. As such, it is important to evaluate each company individually before investing your money in them, and making a decision as to whether you should invest in Google.
You may also want to investigate the parent company to see if it is a good investment. Some people are not interested in the parent company because they feel that the parent company may not be able to manage its own growth, or if it is too ambitious in its expectations of what it can accomplish in the next five years or so.
Before investing in Alphabet, it is a good idea to spend some time examining how it operates, its current and future plans, and expectations, and the financial results of its past and upcoming investments. While this does not mean that the company is an excellent investment, it is definitely worth consideration.