GOOGL vs GOOG: Which Google Stock Should You Buy?

If you have ever searched for Google stock on your brokerage platform, you probably noticed something confusing. There are two tickers: GOOGL and GOOG. They trade at nearly identical prices, they represent the same company, and yet they are technically different securities. So which one should you actually buy?

I had to make this exact decision when I added Alphabet to my portfolio, and in this article I will explain the difference, the history behind it, and which one I chose.

The Key Difference: Voting Rights

The fundamental difference between GOOGL and GOOG comes down to one thing: voting rights.

• GOOGL (Class A shares): each share gives you one vote at shareholder meetings. These are the shares with standard voting rights, the same type of shares most publicly traded companies issue.
• GOOG (Class C shares): these shares carry zero voting rights. You own a piece of the company, but you have no say in shareholder votes.

There is also a Class B share that you cannot buy on the open market. These are held by founders Larry Page and Sergey Brin, and each Class B share carries 10 votes. This structure is how the founders maintain control of Alphabet despite owning a relatively small percentage of the total shares outstanding.

Why Does Alphabet Have Two Public Share Classes

This dual-class structure dates back to 2014 when Google (before it became Alphabet) executed a stock split that created the Class C shares. The reason was straightforward: the founders wanted to be able to issue new shares for employee compensation, acquisitions, and other purposes without diluting their voting control.

By creating a class of shares with no voting rights, Alphabet could distribute stock without giving away any governance power. This is a structure that several other tech companies have since adopted, including Meta and Snap.

At the time of the split, existing shareholders received one Class C share (GOOG) for every Class A share (GOOGL) they held. The idea was that both classes would trade at similar prices, which has largely been the case ever since.

Price Comparison: Are They Really the Same

In practice, GOOGL and GOOG trade at nearly identical prices. The difference is usually less than 1%, and it fluctuates day to day. Sometimes GOOGL trades slightly higher (reflecting the value of voting rights), and sometimes GOOG is marginally cheaper.

Over the long term, both classes have delivered essentially the same returns. If you look at a 5-year or 10-year chart, the price lines overlap almost perfectly. This makes sense because both share classes represent the same claim on Alphabet's earnings, dividends, and assets. The only difference is governance.

For the vast majority of retail investors, the price difference between the two is negligible and not something worth optimizing for.

Which One I Chose and Why

I personally buy GOOGL, the Class A shares with voting rights. Here is my reasoning.

While I understand that my individual voting power at a company the size of Alphabet is effectively meaningless, I still prefer owning shares that come with the full set of shareholder rights. It is a matter of principle for me. When I own a piece of a company, I want it to be a complete piece, including the ability to vote on important matters like board elections, executive compensation, and major corporate decisions.

There is also a subtle liquidity argument. GOOGL tends to have slightly higher trading volume than GOOG because it is the share class included in the S&P 500 index. This means more index funds and ETFs hold GOOGL, which can lead to marginally tighter bid-ask spreads. The difference is minimal, but it exists.

That said, if GOOG happens to be trading at a noticeable discount to GOOGL on the day you want to buy, there is nothing wrong with choosing the cheaper option. You are getting the same economic exposure to Alphabet either way.

What About Dividends

In 2024, Alphabet announced its first-ever dividend. Both GOOGL and GOOG shareholders receive the exact same dividend per share. There is no difference in dividend treatment between the two classes. So if passive income is part of your investment thesis, both share classes are equally attractive on that front.

Practical Considerations for European Investors

If you are investing from Europe, there are a few additional things to keep in mind when buying either GOOGL or GOOG:

• Currency exposure: both trade in USD on NASDAQ, so you will have dollar exposure regardless of which class you choose
• Withholding tax on dividends: as a European investor, you will likely face a 15% to 30% withholding tax on Alphabet dividends depending on your country's tax treaty with the US. This applies equally to both share classes.
• Broker availability: most major brokers like Interactive Brokers, Trading 212, and eToro offer both GOOGL and GOOG. Some platforms may only list one of them, so check before you assume you have a choice.
• Fractional shares: if your broker offers fractional shares, the distinction matters even less since you can buy any dollar amount of either ticker

The Bottom Line

The difference between GOOGL and GOOG is real but, for most individual investors, not particularly consequential. Both give you the same economic interest in one of the world's most dominant companies. The only practical difference is that GOOGL comes with voting rights and GOOG does not.

My recommendation is to go with GOOGL (Class A) unless GOOG is trading at a meaningful discount on the day you buy. The voting rights, higher liquidity, and S&P 500 inclusion make it the slightly better default choice. But if you already own GOOG, there is no reason to sell and switch. You own the same company either way.

What matters far more than which ticker you choose is whether Alphabet as a business fits your investment thesis, at what price you buy, and how it fits within your overall portfolio. Those are the decisions that will actually impact your returns over the long term.