Why Alphabet Class C Stock Is a Better Buy Than GOOGL
- Alphabet Class A common shares trade at $335 while Class C non-voting shares change hands at $331, leaving a 1% gap where extra cash buys only a single...
- The tech giant maintains three classes of common stock on the Nasdaq under tickers GOOGL for Class A and GOOG for Class C.
- All three classes share identical liquidation and dividend rights.
Alphabet Class A common shares trade at $335 while Class C non-voting shares change hands at $331, leaving a 1% gap where extra cash buys only a single vote, fool.com reported.
Alphabet Stock Classes Trade 1 Percent Apart
The tech giant maintains three classes of common stock on the Nasdaq under tickers GOOGL for Class A and GOOG for Class C. Class A shares carry one vote each, unlisted Class B shares hold ten votes each, and Class C shares carry no voting rights except where required by law.
All three classes share identical liquidation and dividend rights. Holders of Class A, Class B, and Class C stock receive the same 22-cent quarterly dividend and hold identical claims to net income.
Founders Control Majority Voting Power
Co-founders Larry Page and Sergey Brin control roughly 53% of Alphabet’s total voting power through their ownership of Class B shares, according to the company proxy statement released April 6. That majority stake allows them to elect all directors and decide most issues brought to shareholders.
Alphabet $GOOGL raises $80B in equity to fund AI infrastructure buildout:• $15B underwritten offering of Class A/C common stock• $15B in mandatory convertible preferred stock (depositary shares, converts ~May 2029)• $40B at-the-market program starting Q3 2026 (~$30B…
Issuing non-voting Class C stock helps keep the founders’ ownership percentage intact when distributing employee pay. Because the founders maintain over half the vote on their own, the Class A vote remains largely symbolic for everyday investors.
Repurchase History Narrows the Class Gap
The 1% price spread shifts over time. Non-voting Class C shares actually traded above Class A shares throughout 2023 and 2024, before Class A moved ahead in the spring.
Alphabet spent roughly $142 billion repurchasing Class C shares between 2023 and 2025, compared to about $28 billion spent on Class A shares. The company halted buybacks of both classes during the first half of the year while borrowing money and selling new stock to fund artificial intelligence infrastructure.
Third Quarter Results Scheduled for Oct 28
Alphabet reports third-quarter financial results on Wednesday, Oct. 28, with all share classes participating equally in the reported figures. Meta Platforms plans to introduce its own non-voting Class C stock starting Jan. 19, 2027, following an announcement made on Oct. 21.