How to Buy Alphabet Stock Now, Price Forecast and Dividend Guide
Alphabet, the parent company of Google, is one of the largest companies in the world, and is often a favourite stock for investors of all profiles. Indeed, Alphabet stock combines some of the advantages of growth stocks and defensive stocks, so it can be suitable for any portfolio.
In this analysis, we will review Alphabet's business and advantages, as well as its financial performance and share price performance. Finally, we'll also introduce you to an ideal online broker to buy Alphabet stock today.
Alphabet is the parent company of the famous internal search engine Google, and was founded as Google Inc. in 1998. However, while Google remains the dominant search engine on the web, the company's activities have expanded far beyond that since its inception.
In addition to search engine advertising revenue, Alphabet actually operates:
- Google Play
- Google Cloud
- The Chrome browser
In addition, as we will see later in this analysis, the company continues to invest in many technological projects that should ensure that it continues to diversify its revenue sources in the future. These include autonomous driving, video games, and artificial intelligence technologies.
Thus, Alphabet stock combines the advantages of defensive stocks, given the strength of its current revenue streams, and growth stocks, given its investments in businesses with very high potential. This makes Google stock suitable for both short-term and long-term investors.
Alphabet Stock Price History
Alphabet was first listed in 2004. It is listed on the Nasdaq under the symbol GOOG. The company has a market capitalization of $1920 billion, making it one of the largest companies in the world.
There are 3 types of Alphabet stocks : Google Alphabet stock class A, Alphabet stock class B and Alphabet stock class C. The difference between the 3 shares is based solely on the number of voting rights they carry.
Alphabet stock is also included in the largest U.S. stock indexes, including the Nasdaq, S&P 500 and Dow Jones. As of September 6, 2021, the stock is up more than 80% over 12 months, a period in which it has moved between a low around $1400 and a high of $2925.
Regarding the Alphabet stock history, we can see on the monthly chart below that the share's bullish run since its IPO has been almost perfect. Indeed, the only significant correction period the stock has experienced was between November 2007 and November 2008.
Since then, Alphabet's stock has been on an almost straight uptrend, which accelerated in 2021, resulting in an all-time high of $2925 in August. Thus, although the rise of Google stock may seem stretched, the study of the Alphabet stock quotes shows that it is usual for the stock to progress for many months almost without pause. This clearly argues for a continuation of the rise, especially since both fundamental and technical factors clearly point in this direction, as we will see in the rest of this analysis.
Why Invest in Alphabet Stock?
There are many very concrete factors that show that Alphabet is a particularly strong company with a bright future. Let's look at the most important of these factors below.
An Increasingly Diversified Businesses
As we have seen when studying Alphabet's activities, the company has been able to diversify, after having built its success on the basis of advertising revenues linked to its search engine. These include Android and its Google Play application store, cloud services for businesses, and the Chrome browser, not to mention the famous YouTube.
And in all likelihood, Alphabet will continue to diversify, which should fuel the rise of its share price in the future. Indeed, the company has been investing in areas such as artificial intelligence and autonomous driving, offering solid long-term growth prospects.
An Alphabet Stock Dividend Soon ?
Alphabet's financials are more than solid. In the last two quarters alone, the company generated $30 billion in cash flow. It also has $137 billion in cash on its balance sheet.
With such a strong financial base, an Alphabet stock dividend could soon be paid. A quick calculation shows that if Alphabet were to align itself with its industry average dividend of 1.3%, one could expect a dividend of $35 per share, or a total payout of about $23 billion, which would represent just over half of the cash flow recorded for the entire year 2020.
Alphabet Stock Forecast: Will the Stock Go Up?
Below, we will look at the Alphabet stock forecast from the perspective of financial factors, from the perspective of technical factors, and from the perspective of professional analysts.
Alphabet Stock Financial Forecast
The analyst consensus anticipates new records for Alphabet, both in terms of revenue and EPS.
- EPS is expected to reach $23.78, three times more than in the same quarter of the previous year. Revenue is expected to reach $63.3 billion according to the average economic forecast. This represents a revenue growth of +50%.
- More importantly, GOOG has a solid track record of exceeding expectations. Indeed, both EPS and revenue have exceeded consensus expectations by a wide margin for the last 6 consecutive quarters. This definitely invites optimism for the upcoming quarterly results.
Alphabet Stock Forecast from Analysts
According to TipRanks, there are currently 30 professional analysts following Alphabet stock price. Unusually, they all advise buying the stock.
The average Alphabet stock forecast posted by these analysts is $3173, which implies a potential upside of over 10% from the current price. However, the most optimistic analyst has a target of $3,600, which suggests that Alphabet's stock could rise by 25%.
Technical Forecast : What is the Alphabet Stock Chart Saying?
As seen on the Alphabet stock chart, Alphabet stock has been in a powerful uptrend since the low near $1000 posted at the start of the covid-19 pandemic in March 2020.
Although the RSI indicator has been in overbought territory for several weeks, Google Alphabet stock is not weakening, and investors could quickly target the major psychological threshold of $3000. Beyond that, $3,500 and $4,000 will be the next potential targets. On the downside, the $2600 area will be the first key support not to be broken for the long-term bias of Alphabet stock to remain unmistakably bullish. However, there is no need to fear a fundamental downturn as long as the $2,000 support is held.
Where Can I Buy Google Alphabet stock?
It is effortless to open an account with an online broker and buy shares. But it is much more challenging to choose the right broker. Indeed, there are many brokers on the market.
We have reviewed dozens of brokers to determine which one is the best to buy Alphabet stock to save you time. We have determined that ZFX is an ideal intermediary. This broker was born in 2018, which makes it a fairly new broker. However, the security is not to be questioned, as the FCA regulates the broker.
The trading platform offered by ZFX is the famous MT4 platform, which is a favorite of millions of traders worldwide, for its advanced features in terms of analysis and automatic trading. Finally, it should be noted that ZFX is not limited to stocks, since it is also possible to invest in forex, commodities, or indices.
How to Buy Alphabet Stock Easily
Buying Alphabet stock from the broker ZFX is a quick and easy process. In fact, you can open an online account in just a few minutes by following these steps:
- 1. Register with ZFX
- 2. Verify your ZFX account
- 3. Make your first deposit
- 4. Buy Alphabet stock
Let's go through each of these steps in detail.
1 - Register with ZFX
This first step happens directly on the ZFX homepage, where you will have to click on the "Open an account" button. This will bring up a registration form. Enter the required details as shown in the image below.
Note that you will need to verify your phone number via an SMS procedure. Immediately after this step, you will be able to download the MT4 platform.
2 - Make Your First Deposit
The next step is to make a deposit. You will then use these funds to buy Alphabet stock. To get started, you will need to click on the "Make deposit" button on the screen displayed immediately after registration.
You will need to choose a payment method. We will use the most common payment method as an example, i.e. credit card. You will have to enter your credit card information before the final validation of the payment.
3 - Account Verification
The last step before you can buy Alphabet stock is to verify your account. For this, you will need to send supporting documents as you can see below.
4 - Invest in GOOG Shares
Once ZFX has validated your documents, you are ready to buy Alphabet stock using the MT4 platform and your logins provided by ZFX.
Bottom Line: Should You Buy Alphabet Stock Today?
Alphabet's stock has had an almost flawless run since its IPO, thanks in part to financial results that have almost always exceeded expectations. But the company has never been content to rest on its laurels, and is constantly developing new businesses and revenue streams that should ensure its stock continues to soar in the future.
Moreover, analysts unanimously recommend buying Alphabet's stock, displaying objectives that imply substantial gains in the short and medium term. Furthermore, a study of long-term charts shows that Alphabet's multi-year uptrend shows no signs of weakening.
In conclusion, Alphabet is a stock that appears to be low-risk, yet has very strong upside potential. This should thus be of interest to most investors. If you too want to expose your portfolio to Alphabet stock, you will need to turn to an online broker. However, it is possible to make mistakes and choose an unreliable broker. We therefore recommend that you first look into the broker ZFX, which we believe to be one of the best for buying Alphabet stock, for the many reasons mentioned in this guide.