ALPHABET

ALPHABET represents the publicly floated class A shares of Alphabet Inc, the parent company Google. Alphabet Inc. has three types of company shares, two of which (GOOGL and GOOG) are listed on the Nasdaq exchange. Investors holding GOOGL stock have voting rights, while investors with GOOG do not. Please note that holding CFDs does not offer voting rights, regardless of stock type, because you don’t own the underlying shares.

 

Alphabet Inc. was created following a corporate restructuring by Google to allow the company to venture into other industries outside the search engine market. As of 2022, it is the world’s third-largest tech company and one of the most valuable.

 

Aside from internet services, Alphabet Inc. also has other subsidiaries in the following industries: Android mobile operating systems, private equity for tech companies, digital streaming, internet services, artificial intelligence, robotics, drug discovery, human health, autonomous driving, drone-based delivery, and research for ‘moon-shot’ technologies.

Traders looking to capitalise on ALPHABET and its volatility need to consider these factors before opening a position:

 

• Expect volatility on the days leading to the quarterly earnings reports of Alphabet Inc.


• Almost 80% of Alphabet’s Google revenue comes from advertising (Google search ads, Youtube ads, Google play ads). Take note of busy seasons like the Christmas holidays as they generate billions of dollars for Alphabet Inc.


• As many of Alphabet Inc.’s services rely on future technology development, investor sentiment, public perception of Google, and speculation are major contributors to ALPHABET’s stock price.