While, in 2024, it is difficult to imagine a world without Alphabet (NASDAQ: GOOGL) and its ubiquitous search engine, Google, the company is a mere 26 years old and has been publicly traded for just two decades.
Given that the big tech behemoth has celebrated the 20th anniversary of its initial public offering (IPO) this August and that it has grown so much over the years, Finbold elected to examine just how much an investment of a mere $1,000 made on the fateful day could have returned.
How much would have investing in Google stock at their IPO returned?
Alphabet went public on August 19 with a starting share price of $85 but traded throughout the day at almost exactly $100. In the last 20 years, the technology giant underwent two stock splits, one in 2014, which gave 1,998 shares for every 1,000 an investor owned, and another, less quaint 20-for-1 in 2022.
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This means that $1,000 could have bought the equivalent of 369 modern Google shares in August 2004. Since GOOGL managed a 6,069% rise since the IPO to its latest closing price of $167.18, the initial investment would be worth, at press time, on August 21, 2024, as much as $61,690.
For comparison, a same-size and same-date investment in the S&P 500 would have turned into about $5,000, while one made in Apple (NASDAQ: AAPL) would have turned into $371,327.
Is GOOGL still a good investment?
While Google stock has already grown significantly since going public, it remains a highly enticing potential investment. Indeed, out of the 63 experts represented on the stock analysis network TradingView, as many as 51 rate it as either a ‘buy’ or a ‘strong buy.’
Additionally, GOOGL has no ‘sell’ ratings and has only 12 ‘neutral’ ratings. Alphabet’s shares also have the relatively rare honor of having all 12-month price target – from the lowest to the highest – predict a continued stock market rise.
Indeed, at best, Google stock is expected to surge 37.58% to $230, while at worst, it is forecast to climb 1.69% to $170.
On the other hand, some risks are associated with investing in Alphabet shares. For starters, the Federal Trade Commission (FTC) is reportedly considering the breaking up of Google. Still, if the lessons learned from the breakup of J.D. Rockefeller’s companies, such a move might prove incredibly lucrative for investors.
Another potential issue comes from Google itself. There have been some major leaks from within the company, some of which hint that the firm and its products are likely going to suffer the same fate as many other modern technological platforms.
It is also concerning that the same person who oversaw the death of Yahoo Search as a major competitor to Alphabet’s own engine now has significant command of Google Search’s future direction.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
