Google Stock Split 20 for 1 | Is NOW The Time to Buy? | Googl vs Goog Stock

Stock Mom

Hey everyone it’s ally. hope you’re having a great  day. today i want to talk to you about the recent   google stock split. google split 20 for one. is  it a buy now? let’s figure that out together.   was trading for about two thousand dollars a   share and now it’s it’s about a hundred dollars a  share. so you’re probably like great

It’s cheaper   fundamentally changed so then you’re probably   splits? well to make investors feel like   they can buy more shares and also to make options  affordable and more appealing to options traders.   so before we take a deep dive into google let’s  get some quick housekeeping out of the way.   i just want

To remind you that i am not a licensed  financial advisor. i am just a mom who’s been   newer investors. it frustrates me that investing   is not taught in schools. i believe it should be  taught as early as middle school if not earlier.   at the very least high school but it isn’t, so on  this channel we break down the basics in

Layman’s   terms with no fancy hard to understand financial  lingo. so i would really appreciate if you would   help the channel out and hit the like button and  um if you wouldn’t mind subscribing to my channel   and turning on all notifications this way you’ll  get notified the next time that i release a video.   okay so

Now that we got the yada yada out of the  way let’s get back to google. so on an adjusted   basis after the stock split google had a high of  150 and a low of about a hundred dollars currently   it’s sitting um about 109 110 so it’s a little bit  off the low but let’s figure out together what you   should pay for google and what my

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Target price is.  so the first thing that i like to look at is the   five year pe or price to earnings ratio. it’s 35.  i prefer to see a lower pe here, closer to 20 but   you know i’m willing to pay a premium for google  because i know that google has massive potential   return on your investment. right now it’s 13.6  

Average for google. that’s incredible. that’s  awesome. i mean most etf’s are under 10 so   that’s great for an individual stock. um the next  thing i like to consider is the revenue growth.   grew from 123 billion to 270 billion. phenomenal!   fourth let’s consider their net income growth over  the past five years. it went

From 16.6 billion to   75 billion last year in profit. that is absolutely  astronomical. another thing i consider before   purchasing a stock is shares and dilution over  the past five years. google went from 13.8 billion   shares down to 13.2 billion shares so they’re  not diluting and they’re buying back shares.  

This is another very important thing to look at.  lastly let’s take a quick peek at google’s debt.   long-term liabilities are only 41 billion and  they have 178 billion of cash on hand and their   total liabilities are only 103 billion so they  literally have enough cash on hand to pay off all   of their debts. perfect! okay

So with all of this  in mind what is a good price to pay for google?   before we figure that out together let me just  remind you that there are two different classes   of google stock that you can purchase. there is  class a common shares which trade under the ticker   g-o-o-g-l and there are class c common shares  which

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Trade under the ticker g-o-o-g. so which   should you buy? well for me it’s a no-brainer. if  i’m invested in a company i want voting rights.   class a or ticker googl have voting rights. class  c or ticker goog do not have any voting rights.   be things like you know changes to the board,   compensation for the board,

Adding more shares  to the float or maybe even another stock split   a common shares. next let’s consider google’s   revenue growth over the next decade. right now  they’re growing at over 20 percent. i mean i’m   not sure if that’s sustainable but the profit  margins will pretty much probably continue.   think a high

Price for google looks to be   somewhere in the $140 range. a middle of about  $100 and under $80 in my opinion, it’s a bargain.   cost average in, as close to $100 as i can.   if i can get it for $100 i’m just going to keep  buying a little here and there and if we see a   dip under $100 or closer to say $80 then i’ll 

Build out a much larger position for long term.   i really appreciate you taking the time   out of your day to talk google with me. i think  google is a great long-term investment but like   decisions don’t forget to do your homework.

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Google Stock Split 20 for 1 | Is NOW The Time to Buy? | Googl vs Goog Stock By Stock Mom