GOOGL vs GOOG: Which Google Stock Should You Buy? (My Personal Pick)
When I decided to add some undervalued Google stock to my portfolio, I thought it would be straightforward. Just open my broker, type "Google," and start buying shares. But here's what caught me off guard: there are actually two different Google stocks you can buy, both with nearly identical names but slightly different ticker symbols.
This confusion trips up a lot of investors, so I want to clear this up once and for all. In this guide, I'll explain the key differences between GOOGL and GOOG, and reveal which one I personally chose for my portfolio and why.
What's the Difference Between GOOGL and GOOG?
The main difference comes down to one thing: voting rights.
GOOGL (Class A shares): These come with voting rights, meaning you can participate in shareholder meetings and vote on company decisions
GOOG (Class C shares): These have no voting rights whatsoever
Both represent ownership in the same company (Alphabet, Google's parent company), but only Class A shareholders get a say in how the company is run.
A Quick Reminder: You're Actually Buying Alphabet
Before we dive deeper, let's clarify something important. When you buy "Google" stock, you're actually purchasing shares of Alphabet Inc. This is the holding company that owns Google, YouTube, and all of Google's other business ventures.
So whether you choose GOOGL or GOOG, you're getting exposure to the entire Alphabet ecosystem, not just the Google search engine. This includes their cloud services, Android, Waymo (self-driving cars), and whatever new projects they launch in the future.
Why Did Google Create Two Share Classes?
Originally, Google only had one type of stock (Class A). But in 2014, the founders faced a dilemma. They wanted to raise more capital by issuing new shares, but they didn't want to dilute their voting control over the company.
Their solution? Create a new class of non-voting shares (Class C). This way, they could issue more shares to raise money without giving away any voting power. Pretty smart move from a business perspective.
Price Comparison: Are They Really the Same?
Here's what might surprise you: GOOGL and GOOG trade at nearly identical prices. When I checked on Trading 212, the prices were within a few dollars of each other.
Historically, these two stocks have moved almost perfectly in parallel. This makes sense because they represent the exact same underlying business and assets. Whether you own voting or non-voting shares, you benefit equally from Alphabet's growth.
Google listed on Trading 212
Both stocks are listed on the NASDAQ, so you're buying from the same exchange regardless of which class you choose.
My Personal Decision: Why I Chose GOOGL
After weighing my options, I went with GOOGL (Class A) for three main reasons:
1. Higher Trading Volume
This is something most people don't consider, but it's actually quite important. GOOGL has significantly higher daily trading volume compared to GOOG. When I last checked:
GOOGL: ~40.5 million shares traded daily (3-month average)
GOOG: ~27 million shares traded daily (3-month average)
Higher volume typically means better liquidity, tighter bid-ask spreads, and better execution prices when you're buying or selling.
2. Voting Rights as a Bonus
While I've never actually voted in a shareholder meeting (and probably never will), I like having the option. If Alphabet ever faces major decisions that could impact my investment, I want to have a voice in those decisions.
3. Slightly Better Pricing
In many cases, GOOGL actually trades at a small discount to GOOG, despite offering more benefits. It's not a huge difference, but why pay more for fewer rights?
Which One Should You Choose?
Here's my honest recommendation: if you're unsure, go with GOOGL.
You get the voting rights as a bonus, higher liquidity, and often a slightly better price. Your portfolio will perform virtually identically with either choice, but GOOGL gives you a bit more for your money.
That said, there's no "wrong" choice here. Both stocks will move in lockstep with Alphabet's business performance, so you'll benefit equally from the company's growth regardless of which class you own.
My Current Google Position
I recently added Google to my portfolio through eToro, and yes, I went with GOOGL. As of writing this, I'm down about $20 on my position, but that doesn't bother me at all. I'm investing for the long term because I believe Alphabet is fairly valued right now with significant growth potential ahead.
I made two separate purchases at different price points, which is part of my dollar-cost averaging strategy. You can see exactly how each purchase has performed in my eToro portfolio, which I find really helpful for tracking my investment decisions.
What About Class B Shares?
You might hear about a third class of Alphabet stock (Class B), but don't worry about it. These shares are only held by the founders and early employees. They're not available for public trading, so your choice is simply between Class A (GOOGL) and Class C (GOOG).
The Bottom Line
Both GOOGL and GOOG will give you identical exposure to Alphabet's business success. The choice comes down to whether you value voting rights and slightly better liquidity.
For most investors, I'd recommend GOOGL. You get the voting rights as a bonus, better trading volume, and often a slightly better price. Once you make your choice and open your position, you'll likely stick with the same class for future purchases, so choose the one that makes the most sense for your situation.
Remember, this isn't financial advice. I'm just sharing my personal investment decisions and the reasoning behind them. Always do your own research and consider your individual financial situation before making any investment decisions. If you want to grab yourself a free share up to €100 with Trading 212, check out how here.
FAQ
Q: Is there a significant price difference between GOOGL and GOOG? A: No, both stocks trade at nearly identical prices, typically within a few dollars of each other. The price difference is minimal and shouldn't be the deciding factor.
Q: Do GOOGL and GOOG pay the same dividends? A: Yes, both share classes receive identical dividend payments. There's no difference in the financial returns between the two.
Q: Can I convert GOOG shares to GOOGL shares later? A: No, you cannot convert between share classes. Once you buy one type, you're stuck with it unless you sell and repurchase the other class.
Q: Which stock has better long-term performance? A: Both stocks have performed virtually identically over time because they represent the same underlying business. Your returns will be the same regardless of which you choose.
Q: Should I split my investment between both classes? A: There's no real benefit to owning both. Since they perform identically, it's simpler to stick with one class. I'd recommend focusing on GOOGL for the reasons outlined above.
Q: Are voting rights actually valuable for individual investors? A: For most retail investors, voting rights have minimal practical value. However, they do give you a voice in major company decisions and can be valuable during proxy battles or major corporate changes.
Q: Which brokers offer both GOOGL and GOOG? A: Most major brokers including Trading 212, Interactive Brokers, and eToro offer both share classes.
Risk Disclaimer: Investing in stocks involves risk, including potential loss of principal. Past performance doesn't guarantee future results. The information provided is for educational purposes only and shouldn't be considered personalized investment advice. Always consult with a qualified financial advisor and do your own research before making investment decisions.
GOOGL or GOOG? Which Google Stock Should You Buy?
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