Waze, a popular navigation app known for its real-time traffic and route guidance, is not directly available for public investment as it is owned by Alphabet Inc., the parent company of Google. Alphabet's Class A shares trade on the NASDAQ exchange under the ticker symbol GOOGL, while its Class C shares use the ticker GOOG.
Alphabet acquired Waze in 2013 for over $1 billion. Therefore, to invest in Waze, one would need to invest in its parent company.
Here’s a step-by-step guide on how to invest in Alphabet Inc. (GOOGL):
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:
| Step | Description |
| 1 | Register your account on eToro or any other brokerage company. Usually, registration is free, after that, it is not necessary to start investing immediately. You can first use this account to practice with a virtual portfolio eToro demo account. |
| 2 | Provide your personal details, such as your name, email address, and password for your account. |
| 3 | Verify your email address by clicking on the link sent to you in an email from eToro. |
| 4 | Enter additional information, including your date of birth, address, and phone number. |
| 5 | 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. |
| 6 | Fund your account using a variety of payment methods, such as credit/debit cards, bank transfer, or e-wallets. |
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, the following questions should be considered:
- 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.
Determine Your Investment Approach
Before deciding how much to invest and how often, make sure you have:
- An Emergency Fund: Set aside enough to cover 3-6 months of living expenses.
- A Budget for Investments: Allocate a portion of your income specifically for your investment strategy.
It's also essential to evaluate your overall financial situation and investment objectives:
- Time Horizon: Decide how long you plan to hold your investments.
- Short-term: Less than a year.
- Medium-term: 1-5 years.
- Long-term: More than 5 years. Your time horizon influences the level of risk you can handle and the potential returns you can expect.
- Risk Tolerance: Understand your comfort level with investment risks.
- Higher risks can lead to potentially higher returns, but there's also a significant chance of loss.
- Lower risks help preserve capital. Your risk tolerance depends on your financial situation, goals, and personal preferences.
- Investment Goals: Clearly define why you’re investing.
- Common goals include wealth accumulation, generating income, capital preservation, retirement planning, or saving for education. Knowing your goals will shape your investment strategy.
Place an Order:
Once your account is funded, search for Alphabet Inc. using its ticker symbol: GOOGL or GOOG.
Decide on the type of order you want to place:
- Market Order: Buy immediately at the current price.
- Limit Order: Buy only at a specified price or lower.
- Stop Order: Buy once the stock reaches a certain price.
Specify the number of shares you want to purchase. Alphabet's stock price is relatively high, so you might want to consider buying fractional shares if your broker offers this option.
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.
