Buy Google shares: Forecasts, Strategies And Targets
Published: September 21, 2020 by Valentina
Every day, hundreds of millions of Internet users use a popular website to do their researches: Google. Given its popularity, buying Google shares seems to be a safe and profitable investment, but is it really so?
To find out, we analyzed the finances of this web giant, the performance of its shares on the stock exchange, and the valuations of the main international analysts.
First of all, to buy Google shares (or better Alphabet), you need an intermediary: The safest and cheapest are the CFD brokers – like eToro – that allow you to invest without paying commissions. Here are the best on the market:
Min. Deposit: 50€
Min. Deposit: 100€
Min. Deposit: 50€
Min. Deposit: 250€
Min. Deposit: 100€
Min. Deposit: 250€
Buy Google shares: The Story
Now Google’s dominance of the web is very clear, but this wasn’t always the case.
Developed in the late 1990s as a Stanford University computer data research project, Google founders Sergey Brin and Larry Page invented a unique way of judging the usefulness of data online, known as Page Rank.
With a market share reaching ninety percent in many countries, this giant research company owns one of the most popular websites on the Internet.
The system for classifying content produced much more reliable and usable results than those provided by the rivals of the time: Yahoo and HotBot. Four years after its launch in 1997, Google has become the most popular search engine in the world.
After that, an advertising network, an online e-mail service, Google Maps, and much more were invented, confirming the dominance of this web giant.
From Google to Alphabet
Alphabet Inc. is an American multinational based in Mountain View, California, which was born from the restructuring of Google in 2015.
This is the fourth largest technology company in the world by revenue and one of the most valuable companies in the world. Alphabet Class A stock is listed on the NASDAQ under the ticker GOOGL.
Google has over 70 offices in 50 countries and 114,096 employees. Its total revenue was around $ 161 billion in 2019, with a profit of $ 34 billion.
From 2019, Alphabet ranks 15th on the Fortune 500 ranking of America’s largest companies by revenue.
From January 16th, 2020, Alphabet became the fourth US company to exceed a market capitalization of $ 1 trillion, catching up with the rivals Apple, Amazon, and Microsoft.
Google is therefore a perfect investment to start making money with online trading.
How to buy Google shares?
Buying Google shares is easy: You just need a PC, an internet connection, and a CFD broker in order to invest directly online.
These brokers offer contracts for difference (CFDs) which are safe and regulated derivatives, with the same price of the security to which they refer and can be both bought and sold (short selling), investing both up and down, without pay commissions.
Here’s how you invest with CFD Brokers:
- To buy Google shares, you have to buy the “GOOGLE” CFD, and in this way, you can earn money, if the stock prices go up.
- If, on the other hand, you believe that Google stock prices will fall, you have to sell the “GOOGLE” CFD and in this way, you will earn, if the prices fall.
Once you have reached the desired profit, close the operation and you will get a net profit (if you have made the right forecast), without commissions to pay.
Buy Google shares with the best platforms
The best trading platforms are those with a regular FCA or CySEC license.
These brokers allow you to invest in many markets, trading stocks, indices, ETFs, commodities, etc. and the most suitable to buy Alphabet (Google) shares are eToro, ForexTB and IQ Option.
eToro: Automated trading and intuitive platform
eToro has a FCA license and it is one of the most intuitive platforms on the market. It allows you to invest in total safety.
The screenshot of the Google asset (Alphabet) that you can see below, shows the eToro platform in all its simplicity:
To buy Google shares (or sell them) you have to click on “Invest”, decide whether to buy or sell the stock, and how much to invest in the operation.
Moreover, eToro offers a revolutionary service that allows you to copy the operations performed by the best traders in the world (on eToro) automatically and free of charge: Copy Trading.
This system works like this:
- Register on eToro
- In the section “people”, you can choose the traders to copy based on the performance.
- With a click, Copy Trading will copy exactly the same operations of the chosen traders in your account.
- At this point, you will get the same returns as these trading experts (of course, in proportion to your investment), without doing anything else.
Here are some of the best eToro Traders:
Both Copy Trading as well as traditional trading can also be tested on a free Demo account, without taking real risks.
For more details you can read our full eToro review.
ForexTB: Trading Course and Free Trading Signals
ForexTB has a CySEC license and a series of services created to support investors. It also offers two trading platforms:
- The web platform is easy to use and can be entered from any browser without downloading any software.
- Metatrader 4 is more technical and full of professional indicators and meets the needs of the more experienced traders.
ForexTB has created one of the most popular trading courses in the world for free to improve the knowledge of its users. This ebook explains the basics of trading in a clear and detailed way.
At the operational level, this broker tries to support investors with its free Trading Signals, provided by the Trading Central. These are very reliable indications with a success rate of 70%. Here is the official link to receive them:
IQ Option: Minimum deposit and training
IQ Option has a regular FCA license and is highly appreciated by novice traders, because it allows you to open a real account with only 10 Euros.
The low minimum deposit serves to make real trading less “risky”, even for those who do not have large financial resources.
With IQ Option, you can buy Google shares by investing the cost of a coffee, but since it is real trading, at the same time you can feel the enthusiasm and the excitement that derive from real investments in the markets.
IQ Option has a very modern trading platform, full of customizable tools and indicators. To learn more about certain topics, the broker provides a training area full of educational material, essential for obtaining constant profits.
Even if the deposit threshold is very low, even with IQ Option you can start with a free Demo account and only after that, invest even just 10 Euros and trade in real.
Buy Google shares: Real-time listing
Google shares dividends
Like many tech stocks, Alphabet (and hence Google) has never paid a dividend to shareholders.
Of course, Alphabet is perfectly capable of paying dividends, but has chosen not to. This is a business strategy.
Berkshire Hathaway, Warren Buffett’s fund, for example, does not pay dividends either because it believes it is much better to reinvest this money in the company and therefore increase its value. Alphabet is doing the same thing.
This policy is not final and may change, but it is unknown if and when Google (Alphabet) will start paying dividends to shareholders.
Is buying Google shares worth it?
Google’s revenue forecast exceeded expectations with earnings per share of $ 10.13 versus a forecast of $ 8.21.
Despite this, earnings did not grow in the second quarter of 2020 and this also slowed down the trend of the Alphabet stock, even if it still remains inclined upwards.
Buying Google shares is therefore certainly worthwhile, but growth may not maintain this pace in the coming months.
The 5-year chart for Alphabet (Google) shares clearly shows the trend of this stock which, despite the sharp decline in March 2020 due to the outbreak of the Covid-19 pandemic, has quickly returned to the highs of 2020, surpassing them with a certain agility.
Google’s competitors are the giants of the web that we all know. Even if no one can take Google from its top position of the most used search engine in the world, they can still collect points in other “secondary” activities. The most important are:
Buy Google shares: Forecasts
To make predictions on Google shares (or rather Alphabet) we must continue the financial analysis of the company. Even if it has lost some revenue from web searches, it has recovered with a 6% increase in advertising on YouTube and with a growth of 43% in the cloud computing business – compared to the same quarter of 2019.
Alphabet generated $ 8.6 billion in cash flow in the last quarter, up to 32% year-over-year.
Here are the ratings on the Alphabet stock by the major international investors:
- Stifel Nicolaus downgraded Alphabet (Google) from a “buy” rating to a “pending” rating.
- Deutsche Bank raised its price target on Alphabet (Google) from $ 1,700.00 to $ 1,975.00 and gave the company a “buy” rating.
- Raymond James raised Alphabet’s (Google) target price from $ 1,425.00 to $ 1,700.00 and gave the stock an “outperformance” rating.
- Zacks Investment Research has upgraded the rating from a “sale” to a “hold” for Google.
- Barclays reiterated a “buy” rating on Alphabet (Google) shares.
Buy Google shares: Strategies for Investing
Leading international analysts are strongly bullish on the shares of this company and believe this to be one of the most profitable investments on the market.
Obviously, to buy Google shares, you must respect the basic rules of online trading, including:
- Money Management: Never invest more than 3% of the available capital on a single transaction.
- The Stop loss must be set at the time of the order, taking into account the Fibonacci retracements and the Pivot Points.
Here are the strategies deriving from the forecasts of the major investment banks:
- In the short term (a few weeks or months), you can invest upwards as long as the price is below the target of $ 1,679.75 and then follow the short-term swings of the stock.
- In the long term (over 6 months), you can buy Google shares without a target, it is better to keep them in the portfolio and bring the stop loss closer to the entry price as soon as possible in order to reduce the risk of retracement.
Google shares target price
Analysts at the eToro Trading Desk have published their purchase ratings for Google (Alphabet) shares. Their twelve-month average target price is $ 1,679.75, suggesting that the stock could grow 11.98% within a year.
With a market share of up to ninety percent in many countries, this company owns one of the most popular websites on the internet and offers a huge amount of services at all levels.
Buying Google shares (Alphabet) is considered an excellent investment by leading analysts, but to be profitable you need to follow the right strategies starting with the right online brokers, preferably without commissions.
You can sign up for one of the CFD brokers that we have listed in this article, access the Demo account and, after doing some testing and becoming familiar with the trading platform, make the first deposit and seriously invest in Google shares. Here are the official links:
- Access the eToro Demo account for free by clicking here
- Register on ForexTB and try the Demo account by clicking here
- Access the IQ Option Demo account for free with this link
Yes, the stock is solid and can offer excellent earning prospects but you have to use the right strategies. In our guide you will find all the details.
The forecasts of the main analysts are positive.
The 12-month target price for the Google stock is $ 1,679.75 per share.
eToro is the most suitable CFD Broker to buy Google shares (Alphabet) safely and without paying commissions.