How To Buy YouTube Stock In cy]? [Is It Possible or Not?]

Updated On: 09/05/2023
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Are you keen on investing in one of the world's largest and most influential platforms? You're certainly not alone.

With over two billion users logging in monthly, YouTube's popularity is undeniable, making it an attractive prospect for potential investors. So, you must be wondering—how to buy YouTube stock.

Before we get into the details, we must understand that YouTube isn't a standalone company but part of Alphabet Inc., Google's parent company.

If you want a piece of YouTube's financial pie, it means getting your hands on Alphabet shares. In this blog post, we'll guide you through the process and what to consider before making that leap into tech stock investing.

All About YouTube and Its Market Presence?

All About YouTube and Its Market Presence?

YouTube, established in 2005 and bought by Google in 2006 for US$1.65 billion, is the world's leading video-sharing platform with billions monthly users. It's the second most visited website globally.

As part of Alphabet Inc., YouTube significantly boosts the conglomerate's valuation, with estimates suggesting its worth exceeds $100 billion.

Its dominance in the video streaming market is unparalleled, overshadowing competitors like Vimeo and Dailymotion. While one can't invest in YouTube directly, buying Alphabet Inc. stocks (traded as GOOGL and GOOG on NASDAQ) offers an indirect stake in YouTube's performance.

The Parent Company: Alphabet Inc.?

This American giant is headquartered in Mountain View, California. Larry Page and Sergey Brin, the founders of Google, have created Alphabet Inc. to act as the parent company of Google and several other companies that were previously the subsidiaries or divisions of Google.

Alphabet Inc. oversees businesses in various domains, including technology, life sciences, investment, and research.

Google is the largest subsidiary of Alphabet Inc., but other notable companies include Calico, CapitalG, DeepMind, GV, Google Fiber, Jigsaw, Sidewalk Labs, Verily, Waymo, and X.

The main aim of Alphabet Inc. is to make businesses more autonomous and provide the appropriate independence to manage their operations effectively, fostering innovation and growth. Its shares are traded on the NASDAQ under the symbols GOOGL and GOOG.

Can You Invest in YouTube Stock?

Can You Invest in YouTube Stock?

No, you cannot directly invest in YouTube stock because YouTube is a subsidiary of Google. Google bought YouTube in November 2006 for $1.65 billion in stock.

If you want to invest in YouTube, you must buy Alphabet Inc. (GOOGL) stocks, Google's parent company.

By doing so, you indirectly invest in all of Google's subsidiaries, including YouTube. Investing in stocks always carries risk, and it's wise to research thoroughly and consider seeking financial advice.

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What Is YouTube’s Stock Price and Ticker?

Currently, YouTube is not a publicly traded company. Hence it does not have a stock price or ticker symbol.

It is owned by Google's parent company, Alphabet Inc., which is publicly traded on the NASDAQ stock exchange.

Alphabet’s Class A shares are listed under the ticker symbol "GOOGL", and its Class C shares under "GOOG."

Investors interested in the financial performance of YouTube would need to look at Alphabet Inc.'s overall performance.

The specific financial data of YouTube is incorporated under Alphabet's "Google services" line item in its financial reports.

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How To Buy YouTube Stock?

How To Buy YouTube Stock?

To buy YouTube stock, you must understand that investing directly in YouTube is impossible. This is because Google acquired YouTube for $1.65 billion in 2006 and now owns 100% of the company. However, you can invest in YouTube's parent company, Alphabet Inc. Here's how:

  • Understand the Stock: Alphabet Inc., the parent company of YouTube, is listed on the Nasdaq exchange under the ticker symbols GOOGL and GOOG.
  • Choose a Brokerage: Before buying any stock, you must have an account with a brokerage. Many online brokerages are available, so choose one that fits your needs regarding fees, user interface, and other offered services.
  • Visit Google Finance: You can directly buy shares of stock from Google by visiting Google Finance and clicking the "Trade" button at the top right-hand corner.
  • Select the Ticker: Decide whether you want to buy GOOGL or GOOG shares. Both represent Alphabet Inc. but might have different voting rights and dividend policies. Research both to determine which is right for you.
  • Determine the Number of Shares: Decide how many shares you want to purchase based on your investment budget and the stock's current price.
  • Place Your Order: Once you've decided on the number of shares, place your order through your brokerage. You can choose between different orders, such as market orders (buying at the current market price) or limit orders (setting a maximum price you're willing to pay).
  • Monitor Your Investment: After purchasing, regularly check on the performance of your Alphabet Inc. stock. Consider company performance, market trends, and any dividends you might receive.
  • Stay Updated: Keep yourself informed about Alphabet Inc.'s performance, major company announcements, and general market conditions. This will help you make informed decisions about holding, selling, or buying more shares in the future.

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Dividends, Stock Splits, and Other Considerations

When you buy stocks, dividends, and stock splits should be on your radar. Currently, Alphabet does not offer dividends on its shares; instead, it reinvests profits back into its diverse portfolio of enterprises.

This means your returns from Google's shares (remember Google owns YouTube) come solely from capital gains, i.e., you profit if you sell the stock at a higher price than you paid.

Stock splits are another consideration. A company may opt for a stock split to make shares more affordable for the average investor. While Google performed such a split in 2014 (a 2-for-1 split), there's no certainty that it will happen again soon.

Alternative Investment Opportunities: ETFs and Mutual Funds

Even though YouTube isn't available as an individual stock, you can invest indirectly through exchange-traded funds (ETFs) and Mutual Funds.

Both include the shares of Alphabet, allowing investors to tap into YouTube's potential growth indirectly.

Exchange Traded Funds (ETFs)

ETFs are investment funds that trade like individual stocks on an exchange. They're generally designed to track the performance of specific indexes, sectors, or commodities. You might want to consider purchasing tech-focused ETF funds that hold Alphabet Inc.

Here are a few examples of such ETFs:

  • FDN: First Trust Dow Jones Internet Index Fund
  • XLK: Technology Select Sector SPDR Fund
  • VGT: Vanguard Information Technology Index Fund

When investing in these ETFs, you also buy a basket of other stocks, meaning your investment is spread across multiple technology companies, not just Alphabet.

Mutual Funds

You can choose to invest through mutual funds. These are investment vehicles managed by financial professionals who allocate the fund's capital to yield capital gains or income for the fund's investors.

A key advantage is that they offer diversification - your money is spread across various securities, including those of Alphabet Inc.

For instance:

  • Fidelity Contrafund
  • Vanguard Growth Index Fund
  • T. Rowe Price Communication & Technology Fund

Before investing in any mutual fund, read its prospectus, which provides key details about its objectives, strategies, risks, and performance.

Your decision should depend on risk tolerance, investment objectives, and time horizon. Consulting with a financial advisor could be highly beneficial before investing.

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FAQs About how to buy YouTube stock

Can I directly purchase YouTube stock?

As YouTube is not a standalone entity but part of Alphabet Inc., you can't directly buy YouTube stocks. Your investment in Alphabet includes YouTube.

Where can I buy Alphabet shares?

Shares of Alphabet (GOOGL) can be purchased through any brokerage account that provides access to US stock exchanges.

Does Alphabet Inc. offer dividends?

No, as of now, Alphabet does not pay dividends to its shareholders.

What factors affect the price of Alphabet's stock?

The price of Alphabet's stock is impacted by its overall profitability, largely driven by innovations at Google and developments in its other ventures, including YouTube.

What are the alternatives if I want to invest in YouTube indirectly?

You can consider Exchange-Traded Funds (ETFs) and mutual funds focused on tech stocks that include Google/Alphabet in their portfolio.

Conclusion

Companies like Alphabet Inc. lead the charge in digital innovation as technology advances. Investing in Alphabet is not just investing in YouTube; it's about backing a powerful conglomerate with a diverse portfolio of companies.

It can be a strategic move for those aiming to diversify their investments across different sectors.

Always remember that stocks come with risks and uncertainties. Before diving into it, thorough research and consultation with financial advisors are essential steps everyone should consider.

Michael Restiano

I support product content strategy for Salt Money. Additionally, I’m helping develop content strategy and processes to deliver quality work for our readers.

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