How Much Is Google Worth?

Mandatory Credit: Photo by CLEMENS BILAN/EPA-EFE/Shutterstock (10070410ad)An employee walks past a Google logo at the new Google office in Berlin, Germany, 22 January 2019.
CLEMENS BILAN/EPA-EFE/Shutterstock / CLEMENS BILAN/EPA-EFE/Shutterstock

Google’s ubiquity seems to qualify it as less of “a search engine” and more so “the search engine.” Its cultural imprint runs so deep that “Google” has become a verb, and many people use it as their default browser page. With a share of the global search engine market that comes out to over 92%, according to Statcounter, the fact that Google is an important part of the daily lives of most people can’t be understated. GOBankingRates googled some figures on Alphabet, Google’s parent company, to see what this importance means for investors.

Alphabet announced its third-quarter results for 2021 on Oct. 26, beating Wall Street revenue and profit expectations. The company generated revenues of about $65.12 billion, based on retail as well as YouTube’s strength, growth in the Google Cloud division and robust advertising growth despite changes to privacy settings in Apple’s iOS 14 that affected ad revenue on some online platforms.

Google: Company Snapshot
Headquarters Mountain View, California
Year Founded 1998
Founders Sergey Brin, Larry Page
CEO Sundar Pichai

How Much Is Google Worth Now?

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In early 2020, Alphabet became the third American tech company to be worth $1 trillion in market value, joining Apple and Microsoft — Tesla and Amazon since have joined the club.

The price of GOOG, Alphabet’s Class C shares, is $2,925.78 as of Oct. 28, giving Google’s parent company a current market capitalization of $1.942 trillion. In addition to its Class C shares, there are also shares of GOOGL, Alphabet’s Class A common stock. Both types of shares are currently trading at relatively similar prices.

What Is Google Worth?
Alphabet (GOOG) Share Price, 52-Week Range $1,522.24-$2,982.36
Third-Quarter 2021 Revenue $65.12 billion
Shareholders’ Equity $244.567 billion

What Is Market Capitalization?

Market capitalization is one of several metrics investors use to gauge how much a company is worth. The market cap is the value of all of the company’s stock combined, giving you a sense of what value investors are placing on the company based on the price it is trading at. The figure can change as much as the share price does since it’s calculated by multiplying the number of outstanding shares by the current trading price.

Although Alphabet shares were recently at a 52-week high of $2,982.36, the company is susceptible to market volatility, perhaps as a result of competing with tech giants like Apple or Amazon. Alphabet’s share price was $1,522.24 at its 52-week low. Swings in share price have, in turn, caused its market cap to vary widely over the same period. At it’s current share price of $2,925.78, Google has a market capitalization of $1.942 trillion.

What Is Google’s Net Worth?

Google’s net worth can be calculated by subtracting the company’s liabilities from its assets. Shareholders’ equity, which likewise equals total assets minus total liabilities, is essentially a company’s net worth. Alphabet’s total shareholders’ equity as of the quarter ending Sept. 30 was $244.567 billion.

“Five years ago, I laid out our vision to become an AI-first company. This quarter’s results show how our investments there are enabling us to build more helpful products for people and our partners,” said Alphabet CEO Sundar Pichai in the Oct. 26 earnings release. “Ongoing improvements to Search, and the new Pixel 6, are great examples. And as the digital transformation and shift to hybrid work continue, our Cloud services are helping organizations collaborate and stay secure.”

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Google’s Founders

Google was founded in 1998 by Larry Page and Sergey Brin. The two met at Stanford in 1995 and collaborated on a search engine called Backrub. Google is a play on the word “googol,” which is a one followed by 100 zeros. The name was a great summary of Page and Brin’s mission “to organize the world’s information and make it universally accessible and useful.”

Forbes named Page and Brin among the top 10 on its list of the world’s richest billionaires, with net worths of $124.4 billion and $119.9 billion, respectively, as of Oct. 28.

Key Product Lines Contributing to Revenue

Alphabet’s third-quarter earnings report highlighted several categories that contributed to its success. The following product lines are partly responsible for its revenue:

  • Google Services: Google Services includes Google Search, Google Maps and the Google Play app store.
  • YouTube ads: YouTube ad revenue was up 43% from last year for over $7 billion in revenue, according to CNBC.
  • Google advertising: Google ad revenue was also up 43% from last year, CNBC reported.
  • Google Cloud: Google Cloud revenue rose 45%, to $4.99 billion.

Alphabet’s Top 10 Shareholders

GOOGL has one of the highest levels of institutional ownership at 78.94%. The top 10 shareholders of Alphabet’s Class A stock are:

Shareholder Percentage of Shares
1 The Vanguard Group Inc. 7.14%
2 BlackRock Fund Advisors 4.29%
3 Fidelity Management & Research Co. LCC 4.06%
4 SSgA Funds Management Inc. 3.68%
5 T. Rowe Price Associates Inc. 2.37%
6 Wellington Management Co. LLP 1.73%
7 Geode Capital Management LLC 1.68%
8 Capital Research & Management Co. 1.27%
9 Northern Trust Investments Inc. 1.21%
10 Massachusetts Financial Services Co. 0.95%

Is Google Worth the Money?

Alphabet has outperformed other FAANG stocks this year, such as Facebook, Netflix and Amazon. Based on five analysts, Alphabet is a “buy” to “strong buy,” with an average price target of $3,272.22, according to Yahoo! Finance. Alphabet’s current share price of $2,925.78 leaves plenty of room for growth. Based on historical share appreciation, impressive revenue news and future potential from investments such as YouTube and AI, Alphabet may be worth the money as a long-term investment.

Daria Uhlig and Sean Dennison contributed to the reporting for this article.

Company Net Worth Guides

Data is accurate as of Oct. 28, 2021, unless otherwise noted, and subject to change.

Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.

About the Author

Cynthia Paez Bowman is a personal finance writer with degrees from American University in international business and journalism. Besides writing about personal finance, she writes about real estate, interior design and architecture. Her work has been featured in MSN, Brex, Freshome, MyMove, Emirates’ Open Skies magazine and more.

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