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If You Invested $1000 in Alphabet a Decade Ago, This is How Much It'd Be Worth Now
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Alphabet (GOOGL - Free Report) ten years ago? It may not have been easy to hold on to GOOGL for all that time, but if you did, how much would your investment be worth today?
Alphabet's Business In-Depth
With that in mind, let's take a look at Alphabet's main business drivers.
Alphabet is one of the most innovative companies in the modern technological age. Over the last few years, the company has evolved from primarily being a search-engine provider to cloud computing, ad-based video and music streaming, autonomous vehicles, healthcare providers and others.
In the online search arena, Google is a monopoly with more than 94% of the online search volume and market. Over the years, the company has witnessed increase in search queries, resulting from ongoing growth in user adoption and usage, primarily on mobile devices, continued growth in advertiser activity, and improvements in ad formats.
The company is gaining market share in the cloud-computing, driven by continued strength in Google Cloud Platform and Google Workspace.
Alphabet also enjoys a dominant position in the autonomous vehicles market, thanks to Waymo’s relentless efforts. Also, it has bolstered its footprint in the healthcare industry with its life science division, Verily.
The company has also become a renowned name in the world of entertainment. YouTube came up with $29.2 billion advertising revenues in 2022, up 1.4% year over year.
Total revenues were $282.84 billion in 2022, up 9.8% from 2021. The company reports revenues under three broad heads, Google Services, Google Cloud and Other Bets, which generated 89.6%, 9.3% and 0.4% of total revenues, respectively.
The Google Services includes products and services such as ads, Android, Chrome, hardware, Google Maps, Google Play, Search, and YouTube.
Google Cloud includes Google’s infrastructure and data analytics platforms, collaboration tools, and other services for enterprise customers.
Other Bets is a combination of multiple operating segments that are not individually material.
Alphabet has many competitors in the form of internet pioneers, streaming platforms, technology giants, cloud computing and customer relationship companies.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Alphabet ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in December 2013 would be worth $5,015.38, or a 401.54% gain, as of December 29, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 159.77% and gold's return of 64.92% over the same time frame.
Analysts are forecasting more upside for GOOGL too.
Alphabet's strong cloud division is aiding substantial revenue growth. Moreover, expanding data centers will continue to bolster its presence in the cloud space. For 2023, we expect Google Cloud revenue to grow 24% from 2022. Further, major updates in its search segment are enhancing the search results. Also, strong focus on innovation of AI techniques and the home automation space should aid business growth in the long term. Further, its deepening focus on wearables category remains a tailwind. Alphabet’s expanding presence in the autonomous driving space is contributing well. Its growing efforts to gain foothold in the healthcare industry are other positives. However, sluggishness in the company’s Network advertisement businessremains a headwind. Additionally, its growing litigation issues and increasing expenses are concerns.
Over the past four weeks, shares have rallied 5.81%, and there have been 1 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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If You Invested $1000 in Alphabet a Decade Ago, This is How Much It'd Be Worth Now
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Alphabet (GOOGL - Free Report) ten years ago? It may not have been easy to hold on to GOOGL for all that time, but if you did, how much would your investment be worth today?
Alphabet's Business In-Depth
With that in mind, let's take a look at Alphabet's main business drivers.
Alphabet is one of the most innovative companies in the modern technological age. Over the last few years, the company has evolved from primarily being a search-engine provider to cloud computing, ad-based video and music streaming, autonomous vehicles, healthcare providers and others.
In the online search arena, Google is a monopoly with more than 94% of the online search volume and market. Over the years, the company has witnessed increase in search queries, resulting from ongoing growth in user adoption and usage, primarily on mobile devices, continued growth in advertiser activity, and improvements in ad formats.
The company is gaining market share in the cloud-computing, driven by continued strength in Google Cloud Platform and Google Workspace.
Alphabet also enjoys a dominant position in the autonomous vehicles market, thanks to Waymo’s relentless efforts. Also, it has bolstered its footprint in the healthcare industry with its life science division, Verily.
The company has also become a renowned name in the world of entertainment. YouTube came up with $29.2 billion advertising revenues in 2022, up 1.4% year over year.
Total revenues were $282.84 billion in 2022, up 9.8% from 2021. The company reports revenues under three broad heads, Google Services, Google Cloud and Other Bets, which generated 89.6%, 9.3% and 0.4% of total revenues, respectively.
The Google Services includes products and services such as ads, Android, Chrome, hardware, Google Maps, Google Play, Search, and YouTube.
Google Cloud includes Google’s infrastructure and data analytics platforms, collaboration tools, and other services for enterprise customers.
Other Bets is a combination of multiple operating segments that are not individually material.
Alphabet has many competitors in the form of internet pioneers, streaming platforms, technology giants, cloud computing and customer relationship companies.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Alphabet ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in December 2013 would be worth $5,015.38, or a 401.54% gain, as of December 29, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 159.77% and gold's return of 64.92% over the same time frame.
Analysts are forecasting more upside for GOOGL too.
Alphabet's strong cloud division is aiding substantial revenue growth. Moreover, expanding data centers will continue to bolster its presence in the cloud space. For 2023, we expect Google Cloud revenue to grow 24% from 2022. Further, major updates in its search segment are enhancing the search results. Also, strong focus on innovation of AI techniques and the home automation space should aid business growth in the long term. Further, its deepening focus on wearables category remains a tailwind. Alphabet’s expanding presence in the autonomous driving space is contributing well. Its growing efforts to gain foothold in the healthcare industry are other positives. However, sluggishness in the company’s Network advertisement businessremains a headwind. Additionally, its growing litigation issues and increasing expenses are concerns.
Over the past four weeks, shares have rallied 5.81%, and there have been 1 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.