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 about 86%, according to Statista, 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. Read on to learn about the company’s net worth and other factors you should consider before investing.
|Headquarters||Mountain View, California|
|Founders||Sergey Brin, Larry Page|
|Alphabet (GOOG) Share Price, 52-Week Range||$83.45 – $123.26|
|Third-Quarter 2022 Revenue||$69.8 billion|
|Shareholders’ Equity||$260.89 billion|
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 Mar. 31 was $260.89 billion–the highest it’s been in the past five years.
How Much Is Google Worth Now?
In early 2020, Alphabet became the third American tech company to reach a $1 trillion valuation, joining Apple and Microsoft — Tesla and Amazon since have joined the club.
The price of GOOG, Alphabet’s Class C shares, is up, at $108.24 as of May 8, 2023, giving Google’s parent company a market capitalization of $1.37 trillion as of the same date. 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 Market Capitalization?
Market capitalization is one of several metrics that 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 have gone as high as $123.26 in the past year, the company is susceptible to market volatility, perhaps as a result of competing with tech giants like Apple and Amazon. Alphabet’s share price was $83.45 at its 52-week low. Swings in share price have, in turn, caused its market cap to vary widely over the same period. As of May 8, Google has a share price of $108.24 and a market capitalization of $1.37 trillion.
Alphabet’s Top 10 Shareholders
GOOGL has a high level of institutional ownership at 61.45%. The top 10 shareholders of Alphabet’s Class A stock are:
|Shareholder||Percentage of Shares|
|The Vanguard Group Inc.||7.68%|
|S SgA Funds Management, Inc.||3.64%|
|Fidelity Management & Research Co.||3.37%|
|Geode Capital Management LLC||1.97%|
|T. Rowe Price Associates Inc.||1.91%|
|Norges Bank Investment Management||1.59%|
|Wellington Management Co. LLP||1.20%|
|Massachusetts Financial Services||1.03%|
|Northern Trust Investments Inc.||1.02%|
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 Google’s mission “to organize the world’s information and make it universally accessible and useful.”
Page has a net worth of $98 billion and Brin has a net worth of $93 billion as of May 8.
Key Product Lines Contributing to Revenue
Alphabet announced its first-quarter 2023 earnings on Apr. 25. The company generated revenues of about $69.8 billion, up 6% year over year despite declining ad revenues. Alphabet reported diluted earnings per share of $1.17, down from $1.23 a year ago.
Alphabet’s first-quarter 2023 earnings report highlighted a few areas that contributed to its success. One is the number of layoffs the company did, which led to a $2.6 billion reduction in charges related to workforce and office space.
Another aspect that boosted Alphabet’s earnings was a $988 million reduction in depreciation expense from the change in estimated life of their servers and network equipment.
Lastly, the earnings report credited a shift in the timing of their annual employee stock-based compensation awards.
Is Google Worth the Money?
Experts say the stock is expected to go up 16% in the next three months, with a 90% probability it will hold a price between $117.96 and $131.36 at the end of that period. Analysts have positive expectations for the stock and do suggest it as a candidate to buy.
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Data is accurate as of May 8, 2023, and is subject to change.