Google Corporation, which is the core of Alphabet Inc. Holding was established in 1998. Its founder was Sergey Brin. He, together with his friend Larry Page, decided to create a search engine that would index all pages of sites, and give users the correct search results based on their requests.
The first search algorithms were imperfect. They returned results based on the number of repetitions of keywords per page. This created favorable conditions for various manipulations. As a result, the search for information for users turned into a long and inconvenient process. Over time, it became apparent that the algorithms needed to be changed. It was this task that two graduate students of Stanford Larry Page and Sergey Brin began to solve.
They developed a search engine based on the link system used by the scientific community. The more sites link to the portal, the higher its rating in the search engine. The inventors named their invention in honor of the largest number – googol. However, this word was intentionally misspelled. The developers sought to create a search service capable of simultaneously processing a large number of requests.
Initially, the Stanford platform was used to operate the new search engine. Only in 1997, the service was transferred to a well-known address. A year later, friends registered the company in their girlfriend’s garage. Then, the first employee was hired, who turned out to be Sergey Brin’s classmate. Over time, the founders of the company managed to attract the early investors, and the new search engine began to make a profit.
The initial public offering of the company occurred in 2004. It went down in history as the most significant issue of shares among firms working in the field of Internet technologies. The IPO was held on NASDAQ. The initial share price was USD 85. Then the corporation was able to collect about USD 1.5 billion.
On the first trading day, 20 million securities were sold. A significant portion of the shares remained with the founders of the corporation. It is worth noting that among the shareholders, there were many company employees. Three years later, the value of securities reached USD 300.
During the 2008 crisis, Alphabet quotes went down. Its value fell to USD 150. Quotes again went up after the release of the first Nexus One smartphone. Stocks beat the previous high. This was followed by another crisis that occurred as a result of the withdrawal of finances from the general stock market in America. However, already in 2016, Alphabet shares again reached a new high. Its cost exceeded USD 1,000.
The reorganization did not hit the value of the securities. Investors received one-to-one updated stocks. At the same time, its course continued to grow. Alphabet Inc. maintains a reputation as one of the most significant market players. The popularity of most services of the corporation does not fall. The profit that the company receives from advertising is continually growing. The corporation shares are blue chips. They are interesting for both traders and investors. By trading these stocks, you can earn high profits.