This year marks 20 years since Alphabet (GOOGL, 0.30%, GOOG, 0.33%) launched its IPO as Google, Inc. Initially facing regulatory challenges, they had to lower the IPO price to a split-adjusted $2.13 per share.
Over time, the company grew into a major force in digital advertising, enabling it to acquire many other businesses. An investor holding just one pre-split share would have seen significant gains over the last 20 years.
Alphabet’s Share Growth
If you bought one share in 2004, you would now hold 40 shares: 20 with voting rights (GOOGL) and 20 without (GOOG). This is due to a 2-for-1 stock split in 2014 and a 20-for-1 split in 2022.
Your investment would now be worth nearly $6,700, including dividends that started in Q2 2024.
Lessons from Alphabet’s IPO
While this return may seem small compared to Amazon’s, where a 1997 IPO share is now about $34,000, it’s important to note Amazon’s market cap was only $450 million at that time, compared to Alphabet’s $27 billion at its IPO.
This highlights that even companies with larger market caps can yield significant returns, suggesting future tech leaders might still offer major investment potential.
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