Key Points
- Alphabet Inc. (NASDAQ: GOOGL and GOOG) provides investment exposure to significant technology trends, including artificial intelligence and cybersecurity.
- Alphabet employs a dual-class stock structure, concentrating voting power among founders and insiders.
- As of July 16, 2023, GOOG was priced at $183.77 and GOOGL at $182.97, with both tickers representing the same underlying business but differing in voting rights.
Alphabet, formed in 2015 as the parent company of Google, has soundly positioned itself among the “Magnificent Seven” tech giants, which also include Amazon, Apple, and Microsoft. The company’s dual-class stock structure, implemented during its 2004 IPO, allows insiders to retain control—Class A shares (GOOGL) offer one vote per share, while Class C shares (GOOG) carry no voting power.
Investors have the option to choose between GOOGL and GOOG, with GOOGL allowing for some voting rights. The disparity in stock performance has leaned toward GOOG since the 2014 stock split. Recent price data indicate that regular investors may prefer either ticker based on their need for voting power, as they offer similar exposure to Alphabet’s diverse sectors, from cloud computing to autonomous transportation.
