What’s the Deal with GOOG and GOOGL? A Simple Guide to Alphabet’s Stock Classes

Let’s face it: the stock market can feel like a maze, especially when you’re dealing with tech giants like Alphabet, the parent company of Google. If you’ve ever glanced at Alphabet’s stock listings, you’ve probably noticed two ticker symbols: GOOG and GOOGL. At first glance, they seem almost identical—so why the different labels? And more importantly, which one should you invest in? Let’s break it down in plain English.

Alphabet 101: A Quick Backstory

Before we dive into the stock classes, let’s rewind a bit. Back in 2015, Google decided it was time for a glow-up. The company restructured itself, creating Alphabet Inc. as its parent company. Think of Alphabet as the umbrella, with Google and other ventures like Waymo (self-driving cars) and Verily (health tech) sitting underneath it. This move wasn’t just about rebranding—it was about giving each division more independence to innovate and grow.

But here’s where it gets interesting: as part of this restructuring, Alphabet introduced two types of shares—GOOG and GOOGL. If you’re scratching your head wondering why a company would do this, don’t worry. You’re not alone. Let’s unpack the differences.

GOOG vs. GOOGL: What’s the Real Difference?

At their core, both GOOG and GOOGL represent ownership in Alphabet Inc. But the devil’s in the details. The key distinction lies in something called voting rights. Yep, it all comes down to how much say you get in the company’s decisions.

GOOGL: The Voting Powerhouse

GOOGL shares are Class A shares, and they come with a special perk: voting rights. If you own GOOGL, you get a seat at the table (figuratively speaking) when it comes to major corporate decisions. Think of it like being invited to a family meeting where everyone gets to weigh in on what’s for dinner—except in this case, the “dinner” is Alphabet’s future strategy.

For investors who want more than just financial returns, GOOGL is the way to go. It’s perfect for those who want to feel like they’re part of the action, even if their influence is relatively small compared to the company’s founders.

GOOG: The No-Frills Option

On the flip side, GOOG shares are Class C shares, and they’re all about the money. These shares don’t come with voting rights, so you’re essentially along for the financial ride. If you’re the type of investor who’s more interested in watching your portfolio grow than in attending shareholder meetings, GOOG might be your jam.

Because GOOG shares lack voting power, they tend to trade at a slightly lower price than GOOGL. But don’t let that fool you—they’re still a solid investment, especially if you’re focused on long-term growth.

Why Does Alphabet Have Two Stock Classes Anyway?

Great question! The dual-class structure is a strategic move by Alphabet’s founders, Larry Page and Sergey Brin, to maintain control over the company. Here’s how it works: in addition to GOOG and GOOGL, there’s a third class of shares—Class B—that’s not publicly traded. These shares are held exclusively by the founders and come with supercharged voting power (10 votes per share, compared to 1 vote per share for GOOGL).

This setup ensures that Page and Brin can steer Alphabet’s ship without worrying about losing control to outside investors. It’s a bit like having a VIP pass to the company’s decision-making process—while the rest of us are in the general admission section.

Which Stock Should You Choose?

Now that you know the difference, the big question is: which one should you invest in? The answer depends on your goals.

If you’re the kind of investor who wants to feel like you’re part of the action, GOOGL is the way to go. Sure, your voting power might be limited, but it’s still a chance to have a say in Alphabet’s future. Plus, there’s something satisfying about knowing you’re not just a passive observer.

On the other hand, if you’re all about the bottom line and couldn’t care less about corporate governance, GOOG might be the better choice. It’s a simpler, no-fuss option that still lets you tap into Alphabet’s growth potential.

What About the Price Difference?

Historically, the price difference between GOOG and GOOGL has been minimal—usually just a few percentage points. This small gap reflects the added value of voting rights in GOOGL shares. But here’s the kicker: during times of corporate drama or big strategic shifts, GOOGL shares might experience more volatility. Why? Because investors who care about voting rights are more likely to react to news that could impact the company’s direction.

For most everyday investors, though, the price difference isn’t a dealbreaker. Whether you choose GOOG or GOOGL, you’re still investing in one of the most innovative companies on the planet.

Final Thoughts: GOOG or GOOGL?

At the end of the day, both GOOG and GOOGL offer a chance to invest in Alphabet’s success. The choice comes down to your personal preferences and investment style. Do you want a voice in the company’s future? Go with GOOGL. Are you more focused on financial returns? GOOG might be your best bet.

Either way, you’re investing in a company that’s shaping the future of technology—and that’s a pretty exciting place to be. So, whether you’re Team GOOG or Team GOOGL, here’s to making smart, informed decisions in the ever-evolving world of tech stocks!