What Your Google Stock Would Be Worth Now If You Had Bought It at IPO

You would have a tidy profit now if you'd bought GOOGL early.
  • Google went public in 2004.
  • The Google initial public offering cost $85 per share.
  • GOOGL stock is now worth significantly more than its IPO price.
  •  Google stock has been getting a lot of attention lately, and there’s been discussion about whether it’s too late for investors to get in. But what if you had bought into the Google initial public offering?

    The Google IPO price on Aug. 18, 2004 was $85 per share, using the ticker symbol GOOG. Since then, the company has changed its name to Alphabet and the stock has split — but not in the typical way.

    Click to read about using Google Finance to follow stocks.

    The 2014 Google Stock Split

    In 2014, Google decided it was time to split the stock. In a typical split, the company splits each share into two, halving the price of each while retaining each current investor’s equity. A company will split stocks if it feels the stock is too pricey, which would scare off investors.

    Find Out: How Much Is Google Worth?

    Google went at it a little differently. It issued a new class of share as a dividend to existing stockholders. Before the split, there were two classes of Google shares: Class A, which was the stock that traded to the public, and Class B which was owned by founders and early investors. Class A shares have one vote each and Class B shares have 10 votes each. If Google had done a traditional split and doubled the number of Class A shares, the result would have been to dilute the voting power of Class B shareholders by half.

    Save for Your Future
    Sponsors of

    To avoid this, the company issued new, non-voting Class C shares under the existing symbol GOOG. The Class A share symbol was changed to GOOGL. The split was executed on April 2, 2014, and affected shareholders of record as of March 27, 2014.

    Check Out: Google Founders’ Net Worths

    What Your Google IPO Share Would Be Worth Today

    If you purchased one Google share at its IPO price of $85 on Aug. 19, 2004, you would now have one share of GOOG, valued at around $1,175 and one share of GOOGL, valued at around $1,180, as of Sept. 13, 2018, for a total of $2,355. This represents a compound annual growth rate, or CAGR, of roughly 24 percent.

    See How: Google Supports Over 2.5M Veteran-Owned Businesses With New Feature

    How Google Compares With Other Tech Stocks

    Should you invest in Google? Is it the best tech stock to own? A lot depends on when you get in. The CAGR of Apple (AAPL) stock over the past ten years is 26.51 percent. Netflix (NFLX) has a 57 percent CAGR over the same period. Microsoft (MSFT) has a CAGR of 15.32 percent over the last decade.

    Only time will tell if it Google has passed its prime. But investors who got in on the IPO have certainly made a tidy profit.

    Click to keep reading about the 10 stocks that could be the next Apple or Amazon.

    More on Investing and Stocks

Related Video

About the Author

Karen Doyle

Karen Doyle is a personal finance writer with over 20 years’ experience writing about investments, money management and financial planning. Her work has appeared on numerous news and finance
websites including GOBankingRates, Yahoo! Finance, MSN, USA Today, CNBC, Equifax.com, and more.

Read More

What Your Google Stock Would Be Worth Now If You Had Bought It at IPO
Close popup

Win $500 – and Start the New Year Right!

When you sign-up to receive bi-weekly email updates from GOBankingRates, you’ll automatically be entered for a chance to win our $500 #BestBanksBestYou sweepstakes. Sign up now!

Loading...
Please enter an email.
Please enter a valid email address.
There was an unknown error. Please try again later.

For official contest rules, please go to: gobankingrates.com/best-banks/official-rules/