How to Buy YouTube Stock

People go on YouTube for various reasons. Some people watch videos for educational purposes, while others may be there to find curated music that can help them sleep. Irrespective of why people watch YouTube, the streaming platform has millions of users watching videos daily.

Today, YouTube has become widespread and has surpassed the position television once held. As a result, you can find billions of videos made by content creators to amuse others, as well as the information to educate them. However, one thing most people do not know about YouTube is whether they can buy YouTube stocks. 

So, what are YouTube stocks? Can you invest in them? Also, if you can invest, how to do that? This article will answer all the questions you might have about YouTube stocks.

And when you’re finished read our other YouTube guides: 

• How to Buy or Rent Movies on YouTube
• How Do You Make Money On Youtube in 2022 

History of YouTube Acquisition

The history of YouTube and its acquisition is long and interesting. YouTube is a video platform that is used and understood by almost everybody. This also makes it one of the stock picks to start with as an investor. 

When YouTube first started, it was a budding startup where people could post their videos and others could watch them. This independent video-sharing startup was acquired by Google, now Alphabet, in 2006 for $1.65 billion. The deal, which surpassed the bid of other companies like Microsoft, Yahoo, and others, was thought to be overpriced, but today, Google makes more money from YouTube than it acquired it for. Ads from YouTube contribute an average annual revenue of $15 billion, almost ten times the amount it was acquired for. YouTube is also the number one video-streaming platform in the world.

Can You Invest in YouTube Stock?

As a subsidiary of Google’s Alphabet, YouTube stock does not trade on its own in the market. However, since it is a division of a much larger company, investors can buy stock in YouTube’s parent company to own a chunk of YouTube. So yes, you can invest in Youtube stock. You just need to buy its parent’s stock to own a piece of it.

What Is the YouTube Stock Symbol?

A stock symbol is a distinctive set of letters assigned to security being traded. They usually represent the name of the security. These sets of letters may vary in number or letters depending on where they are being sold or the name of the company that is being traded. Shares listed on the New York Stock Exchange (NYSE) can have up to four letters, and stocks listed on NASDAQ can have up to five letters. Ultimately, stock symbols are used to describe company stocks on the market.

As mentioned earlier, YouTube is not an independent company, so its stocks cannot be traded directly. It is a subsidiary of Alphabet, so to own a piece of YouTube, you have to purchase Alphabet’s stock.

Before 2015, Alphabet went under the name “Google.” The name change came to reflect its expansion beyond being a search and advertising company. The name “Alphabet” demonstrates its position as a technology conglomerate.

Google went with stock symbols GOOG and GOOGL, and after they changed their name to Alphabet, the stock symbol wasn’t changed. This is typical for most companies. GOOG and GOOGL represent two share classes, but buying either one also means purchasing a piece of YouTube. The difference between them is that investors who purchase GOOGL shares get additional voting rights, while GOOG investors have no voting rights in the company. But, aside from this difference, they are virtually the same.

As a potential investor looking to get a chunk of YouTube, you can buy either one of the two: GOOG or GOOGL. It doesn’t matter which one you purchase, but you’ll be purchasing a part of YouTube and also a part of the whole company.

What Is YouTube Stock Price and Ticker?

A stock price, also known as a share price, refers to the amount it’ll take an investor to purchase a company’s stock or shares. So, what is YouTube stock price?

YouTube is a subsidiary of Google; to acquire a piece of YouTube, you need to buy Alphabet’s shares. Therefore, YouTube stock price refers to the amount it will cost you to purchase an Alphabet share. This same stock allows you to own a share of Alphabet’s other products and subsidiaries, such as Google Play, Google Maps, YouTube gaming, Calico, Google Fibre, etc. If an Alphabet share costs $5, that is also the cost of buying a YouTube share.

YouTube Ticker is the same as the YouTube stock symbol. As earlier explained, Alphabet’s ticker or ticker symbols are GOOG and GOOGL. Therefore, YouTube’s ticker or ticker symbol is GOOG or GOOGL.

How to Buy YouTube Stock

If you are interested in purchasing YouTube stock, here are steps to go about it.

Step 1

Firstly, you need to remember that the stock you want to purchase goes under the GOOG or GOOGL symbols.

Step 2

You will need to set up a trading account with a brokerage firm. Today, there are many online options to choose from.

Step 3

After deciding which brokerage firm to use, you will need to fund your trading account.

Step 4

The next step is to decide how much you want to invest in buying YouTube stock.

Step 5

Once you’ve decided the amount you want to invest, choose between a share of stock or an ETF.

Step 6

Choose your order type and place your order.

Step 7

After doing this, you will have a piece of YouTube, and all that’s left for you is to monitor the market continually.

Things to Consider Before Buying YouTube Stock

The following are some of the things to consider before buying yourself a chunk of YouTube:

• How much are you ready to spend purchasing the stock?
• What are the risks involved?
• Consider the company’s financial performance in the last five years or more and analyze its future projections.
• How long do you want to invest in the company?
• What are your goals for investing?

Is YouTube Stock a Good Investment?

For investors looking to invest in one or more stock picks, YouTube should be among the first on the list. Although YouTube is designed to be a free platform for watching videos, it generates income from ads and subscriptions from its products like YouTube Music, YouTube Premium, and YouTube TV.

The video platform also generates income from videos posted by content creators on its platform. The number of views on a creator’s video potentially translates to money. YouTube, therefore, generates money from videos made by these creators, who also get paid for posting these videos, depending on YouTube analytics.

As a potential investor, these are indicators to look out for. A platform as big as YouTube, with millions of viewers and creators who generate income, and people who pay subscription fees, is a very good place to start investing. For the financial year 2019/2020, YouTube made about 9 percent of its parent company’s total revenue for the year, which is a significant sum in monetary terms.

Therefore, investing in YouTube stock is a good idea, and you are bound to see a return on your investment, be it short- or long-term. Here are some reasons why you should consider buying YouTube stocks.

Massive Success

YouTube is a hugely successful business with a global reach. The video platform has over 2.1 billion monthly active users and subscribers. It has the most viewers compared to other video-sharing platforms. In addition, most people discover new brands and products using YouTube, so there is a lot of traffic. 

Furthermore, endless videos are on the platform to keep viewers returning daily. Every minute, 500 hours of video content are uploaded onto the platform, and this number keeps increasing. The company’s financial performance proves that YouTube is a social media giant.

Vast Number of Content Creators

The platform has millions of content creators who create content to grow their accounts organically. This, in turn, keeps the platform going and generates massive revenue.

Numerous Advertisers

Advertisers on YouTube surpass other platforms, attracting content creators looking to monetize their content to the video platform. Therefore, the value of YouTube increases.

Subscription Plans

Alphabet monetizes YouTube with offerings like YouTube Music, YouTube Premium, etc. This generates additional revenue for the company.

Conclusion

Potential investors looking to invest in the best stock picks will most definitely see YouTube as a top choice. Apart from having millions of users and content that keeps generating revenue, the platform is one of the best solutions for businesses looking to promote their brands.

Considering all of these things, investors will definitely be making a good investment decision by purchasing the company’s stock. The company’s good financial performance over the years also adds to why it has continued to thrive and is still a top pick for numerous investors.