News Digest / Guides / How to invest in YouTube Stock in 2024?

How to invest in YouTube Stock in 2024?

Alex Vellor
10:47am, Tuesday, Jun 04, 2024
Photo by Souvik Banerjee on Unsplash.com

Since YouTube is not a publicly traded independent entity, there is no way to directly purchase shares of YouTube stock. However, you can potentially invest in YouTube's parent company Alphabet Inc. by buying its publicly traded stock.

Alphabet's Class A shares trade on the NASDAQ exchange under the ticker symbol GOOGL, while its Class C shares use the ticker GOOG.

Open A Brokerage Account

To start investing, you will need a brokerage account. The market offers a variety of brokerage firms, each differing in aspects such as commission fees, the range of available markets for investment, the user-friendliness of the platform, and the simplicity of the account setup process.

In this article we will use eToro as an example to show how you can open such an account:

  • Register your account here. Registration is free, after it, it is not necessary to start investing immediately. You can first use this account to practice with a virtual portfolio eToro demo account.
  • Provide your personal details, such as your name, email address, and a password for your account.
  • Verify your email address by clicking on the link sent to you in an email from eToro.
  • Enter additional information, including your date of birth, address, and phone number.
  • Upload a copy of your government-issued ID (such as a passport or driver's license) and a proof of address (such as a utility bill or bank statement) to verify your identity.
  • Fund your account using a variety of payment methods, such as credit/debit cards, bank transfer, or e-wallets.
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Conduct Your Research on Alphabet Inc. Stock

After deciding where to buy Google stock, the next step is researching the company.

This is a short overview of Alphabet Inc. (June 2024):

Metric Value
Market Cap 2.136T
P/E Ratio 26.09
Beta 1.02
Income 82.41B
Sales 317.92B
EPS this Y 30.03%

A research is necessary step to understand whether this company fits your financial goals and strategy. For such research to give good results, following questions should be considered:

What is Alphabet Inc. (GOOG)?
What is the company's history, and how has it performed in the past?
What are the risks associated with investing in the company?
How does the company compare to its competitors?
What is the company's strategy for growth?

To find answers, check the company's annual and quarterly reports, balance sheets, income statements. Its website and third-party evaluators for the comprehensive analysis.

The brokerage platform's company profile contains a wealth of information. Or you can check it on StockInvest.us here >>

Do not forget to check what analysts say about the company, but remember that no one can predict the exact future price due to many factors. Also, remember to regularly read the latest news and check what other investors think of the company.

Photo by Pawel Czerwinski on Unsplash.com

Determine Your Investment Approach

Before determining your investment amount and contribution frequency, ensure you have:

  • An emergency fund covering 3-6 months of living expenses.
  • A budget allocated for your investment strategy.

Also, it's crucial to evaluate your financial situation and investment objectives:

  1. Time Horizon: Consider the duration you plan to hold your investments. A short-term horizon is less than a year, medium-term is 1-5 years, and long-term is more than 5 years. Your time horizon impacts the level of risk you can tolerate and the potential returns.
  2. Risk Tolerance: Assess your comfort level with investment risks. Some investors are willing to take on higher risks for potentially higher returns, while others prefer lower-risk investments to preserve their capital. Your risk tolerance depends on your financial situation, goals, and personal preferences.
  3. Investment Goals: Clearly define your objectives for investing. Common goals include wealth accumulation, generating income, capital preservation, retirement planning, or saving for education. Understanding your goals will guide your investment strategy.

Place An Order

Once you have determined how much you want to invest in Alphabet Inc. (NASDAQ: GOOGL), you can place your order to buy stocks.

You have 2 types of orders to choose from:

  1. Market order: A market order is an order to buy or sell stocks at the current market price. When you place a market order, you are telling your broker to execute the trade at whatever the current market price is, which may not be the same price you saw when you decided to place the order. Market orders are typically executed quickly and are often used when investors want to buy or sell stocks speedily and want to take advantage of a good opportunity.
  2. Limit order: A limit order is an order to buy or sell stocks at a specified price or better. When you place a limit order, you are essentially setting a "limit" on the price you are willing to pay (or receive) for the stocks.

    Limit orders can be helpful for investors who want to be more precise about the price at which they buy or sell a stock and who are willing to wait for a specific price to be reached.

Ultimately, whether you choose to place a market or limit order will depend on your investment strategy, risk tolerance, and goals. It's important to understand each type of order's risks and potential benefits before placing an order and to consider factors such as the current market conditions and the volatility of the stock you are interested in.

Monitor Your Investment Regularly and Set a Stop-loss

Monitoring your investments allows you to stay informed about the performance of your portfolio and make any necessary adjustments to your strategy. Setting a stop-loss order can help you limit your losses by automatically selling a stock if it falls below a certain price.

While it's important to keep an eye on your investments, it's also crucial to avoid overreacting to short-term fluctuations in the market. Remember that the stock market can be volatile, and it's not uncommon for stocks to experience short-term dips before rebounding. Setting a stop-loss and sticking to your investment strategy can help minimise your risk and stay on track to achieve your long-term goals.

Additionally, regularly reviewing your investment strategy is a good idea to ensure it's still aligned with your goals and risk tolerance. As your circumstances and priorities change, you may need to adjust your strategy to ensure that your investments continue to meet your needs. By staying informed, being proactive, and making thoughtful decisions, you can ensure that your assets work as hard for you as possible.

About The Author

Alex Vellor

Start Your Journey With:
eToro
0% Commission Stock Trading
Free Insurance of up to 1 Million
Regulated By FCA, ASIC & CySEC
Social Trading
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Your capital is at risk

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