Overall GOOGL ranks 4th on our list of the best technology stocks to invest in for the long term.
You'll see that if you put $1,000 into GOOGL stock 20 years ago, it would be worth about $35,000 today. The same amount invested in an S&P 500 index fund would be worth about $7,650. Happily for GOOGL shareholders, analysts see plenty more upside ahead for the Magnificent 7 stock.
Amid the 2024 gain of Google stock so far, whether the internet giant is a buy depends on fundamental and technical factors as well as each investor's own goals, strategy and risk tolerance. Alphabet stock has turned in good and bad years recently. Shares jumped 65% in 2021 but in 2022 dropped 39%.
We estimate Google's valuation to be $182 per share, broadly aligning with its current levels of $178. Our forecast is based on 23x expected earnings of $8.05 per share in 2024.
Google Will Survive AI and Break-up Calls. Why Alphabet Stock Could Gain 50%. The company is facing pressure on two fronts—the government and a host of new AI-powered search rivals. It has the capacity to meet both challenges and continue to prosper.
GOOGL Stock Forecast FAQ
Alphabet Class A has 11.92% upside potential, based on the analysts' average price target. Is GOOGL a Buy, Sell or Hold? Alphabet Class A has a consensus rating of Strong Buy which is based on 24 buy ratings, 7 hold ratings and 0 sell ratings.
In the fourth quarter of 2023, the Bill & Melinda Gates Foundation Trust dumped its stake in several large companies, including Apple, Meta, Google-owner Alphabet, Amazon and Nvidia. This was revealed in Berkshire's 13F filing with the SEC, which is required for all investors who manage over $100 million in funds.
The $5,000 per share thesis is somewhat dependent on there not being an economic slowdown anytime soon – although given that many observers predict an economic boost from the recovery of the coronavirus crisis, this possibility remains unlikely.
While Google parent Alphabet's market capitalization stood at $1.126 trillion, totaling $2.306 trillion, it fell short of Apple's valuation of $2.307 trillion.
For our example, let's say you invest $10,000 in a 401(k) today and you aim to withdraw it in 20 years. While it's invested, you earn a 10% average annual return. After two decades, your $10,000 would be worth $67,275.
Today's Netflix is a behemoth of the technology sector. The company boasts a market cap of over $373.435 billion, per Nasdaq. If you had believed in the company and taken a stake of $1,000 in NFLX only 10 years ago, today you would have a holding worth over $18,600.
Broader Market Risks
In the long term, Google faces the same broader risks as all technology companies. The NASDAQ has plummeted before, and there's no law that tech bubbles can't form—and burst. If interest rates go up and investors spook, the technology sector may prove to be soft.
Alphabet's Class A stocks (GOOGL) come with voting rights while the Class C stocks (GOOG) do not. Because of this difference, GOOG tends to trade at a slight discount compared to GOOGL. Other than voting rights, both classes of stocks are similar – both allow you to own an equal stake in Alphabet.
Analysts See 13% Upside For Amazon Stock
The 30-year-old Amazon is among the world's most valuable companies. It is a leader in e-commerce spending and in cloud computing through its Amazon Web Services business. It is also quickly growing its advertising business into a challenger to Google (GOOGL) and Meta (META).
Alphabet Cl A (GOOGL)
Shares jumped 65% in 2021 but in 2022 dropped 39%. Despite mounting competition in AI and internet search, Alphabet advanced 58% in 2023. Also, the Relative Strength Rating of Google stock currently stands at 85 out of a best-possible 99, according to IBD Stock Checkup.
The Future of Amazon
Forecasters predict that Amazon will reach $200 per share a year from now and will continue to rise to $250 per share at the end of 2026. In 2027, the prediction is for a price of $300, and $250 by the end of 2028.
Tesla Stock Price Predictions for 2030
End-of-Year 2030: Most Bullish Projection: 1259 (CoinPriceForecast) Most Bearish Projection: 348.87 (Gov Capital)
# 4 Google
Buffett's technical knowledge wasn't his strongest suit and he admits that he didn't devote enough time and effort to analyzing Google's business and come to a logical conclusion regarding buying in.
Bezos makes personal investments through his venture capital vehicle, Bezos Expeditions. He was one of the first shareholders in Google, when he invested $250,000 in 1998. That $250,000 investment resulted in 3.3 million shares of Google stock, worth about $3.1 billion in 2017.
Top Warren Buffett Stocks
As of January 2025, these are the top stocks in Berkshire's portfolio by number of shares, based on 13F and other regulatory filings tracked whalewisdom.com: Bank of America (BAC), 766.3 million. Coca-Cola (KO), 400 million. Kraft Heinz (KHC), 325.6 million.
Who owns Google? Google (NASDAQ: GOOGL) is owned by 62.71% institutional shareholders, 3.78% Google insiders, and 33.51% retail investors. Brin Sergey is the largest individual Google shareholder, owning 363.97M shares representing 2.97% of the company. Brin Sergey's Google shares are currently valued at $69.90B.
Google parent Alphabet (GOOG) just announced a quarterly dividend — adding to the S&P 500 dividend average. But don't get your hopes up too high. The company is paying just 20 cents a share starting on July 17. Assuming that dividend is paid four times a year, Alphabet will yield just 0.46%.
Stock Price Forecast
The 41 analysts with 12-month price forecasts for Alphabet stock have an average target of 207.51, with a low estimate of 165 and a high estimate of 240. The average target predicts an increase of 6.99% from the current stock price of 193.95.