This year marks 20 years since Alphabet (GOOGL 0.40%) and (GOOG 0.39%) launched its IPO. At the time, the company faced regulatory challenges, and its IPO price was pushed down to $2.13 per share.
Despite this, Alphabet became a leading player in digital advertising, which allowed it to acquire many other businesses. An investor who bought one share back in 2004 would now hold 40 shares—20 with voting rights (GOOGL) and 20 without (GOOG)—thanks to stock splits in 2014 and 2022. This investment would now be worth nearly $6,700, including dividends that started in Q2 2024.
Key Takeaway from Alphabet’s IPO
Though Alphabet’s gains may seem modest compared to Amazon’s, where a 1997 IPO share is now worth around $34,000, it’s important to note the differences in their market caps at IPO.
Today, companies usually go public at a larger market cap. Nonetheless, Alphabet’s story suggests that substantial returns are still attainable, especially for future tech industry leaders.
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