GOOG vs. GOOGL: Which Google Stock Symbol Should I Use?

The best Google stock symbol to use, either the ticker GOOGL or GOOG, depends on how and why you plan to invest in Alphabet stock. Let’s quickly delve into why Google has two stock tickers and which is which.

Table of Contents Table of Contents

1. Key Takeaways
2. Alphabet Inc. Stock Structure
3. Key Differences Between GOOG & GOOGL
4. How to Decide Which Google Stock to Buy
5. GOOG vs. GOOGL: Which Is a Better Investment?
6. Other Multiclass Shares
7. The Bottom Line
8. FAQs

Show Full Guide

Table of Contents

1. Key Takeaways
2. Alphabet Inc. Stock Structure
3. Key Differences Between GOOG & GOOGL
Show Full Guide
4. How to Decide Which Google Stock to Buy
5. GOOG vs. GOOGL: Which Is a Better Investment?
6. Other Multiclass Shares
7. The Bottom Line
8. FAQs

Alphabet Inc. Stock Structure

Before investing in Google and YouTube parent Alphabet, it’s important to know about the three classes of stock on offer. There are Class A, Class B and Class C.

The History Behind GOOG & GOOGL Tickers

From its beginning as a public company, Google co-founders Larry Page and Sergey Brin have targeted an ownership structure that allows themselves, company insiders, and top management to maintain control while enabling/encouraging public investment.

2004: The IPO

Google went public with a unique IPO, offering both Class A shares (GOOGL) with voting rights and Class B shares held by insiders for greater control.

2014: Stock Split

Google created Class C shares (GOOG) without voting rights to ensure founders kept voting control while expanding ownership. GOOG trades without voting power, while GOOGL retains it.

2015: Restructuring as Alphabet

Google restructured, forming Alphabet as a holding company for various ventures, keeping both GOOG and GOOGL shares under the Alphabet umbrella.

Key Differences Between GOOG & GOOGL

Naturally, some confusion might occur given that there are three classes of Alphabet stock but only two tickers. What is the difference between GOOG and GOOGL? The two considerations here are:

1. Voting Rights
2. Class Structure

Voting Rights & Class Structure

Alphabet has three classes of stock, with different voting rights and levels of public access.

So, why are there two Google stocks? To be clear, the general public can’t buy Google Class B stock, leaving only two choices—Google Class A vs. Class C stock, either of which has a ticker symbol, unlike the Class B shares.

Class B stock is reserved only for Google founders and insiders, just like it always was from the IPO.

Stock Performance & Price Differences

There is a small price performance difference between GOOG and GOOGL stock, but it is negligible. Since both share classes represent ownership in the same company, their price performance and movements are closely aligned.

The difference in trading price between the two share classes is generally minor and reflects the market’s valuation of the voting rights that GOOGL shareholders have. However, this difference usually amounts to just a fraction of the share price.

For example, year-to-date GOOG stock is up 29.33% while GOOGL stock is up 29.46% (as of November 14, 2024), making GOOGL the historical top performer in 2024 vs. GOOG.

Over 5 years, GOOG stock is up 170.42%, while GOOGL stock is up 168.28% (as of November 14, 2024), giving GOOG a slight edge.

How to Decide Which Google Stock to Buy

So if you’re still contemplating, GOOG vs. GOOGL, which to buy as an individual retail investor, there is realistically going to be no difference which class of Alphabet stock you invest in.

• One approach would be to buy the cheaper stock in the hopes that the spread between the two lessens over time.
• A second approach would be to decide whether you prioritize being able to vote on the shares you own, in which case it would be preferable to own GOOGL (with voting rights) instead of GOOG (without voting rights).

GOOG vs. GOOGL: Which Is a Better Investment?

GOOG and GOOGL differ mainly in voting rights, not in economic value. GOOGL shares offer one vote per share, giving shareholders a voice in corporate decisions, while GOOG shares have no voting rights.

In terms of financial performance, both share classes receive the same dividends and have historically traded at very similar prices, though GOOGL might occasionally trade slightly higher due to voting power.

For investors not concerned with voting, GOOG could be just as good as GOOGL since the lack of voting rights typically doesn’t impact returns.

Other Multiclass Shares

While most companies only have one stock ticker, some have two, like Warren Buffett’s Berkshire Hathaway, and many more have multiple classes of stock, including non-public private stock and the public version that has a ticker symbol.

Here are some examples of companies with multiple classes of shares:

The Bottom Line

If you accidentally just invested in GOOG without knowing there was a GOOGL or vice versa, you needn’t lose any sleep over it.

Both stocks are for the same company; as such, they trade in tandem and pay the same dividend. The main difference is that GOOGL comes with voting rights, and GOOG doesn’t.

The two Google ticker symbols came about due to Google founders wanting to retain a majority of voting rights for themselves in order to maintain control over the destiny of the company, while still allowing outside investors to participate in the company’s (now known as parent company Alphabet) growth.

But, again, as an investor, it doesn’t matter too much which one you choose.

FAQs