Google is a big tech company that started in 1998 and is part of the Alphabet group. They provide various internet services like search, ads, maps, YouTube, Android, Chrome, Google Play, Google Services, and Google Cloud. They make a lot of money from Google Ads. Now, for Muslim investors, there’s an important question: Is Google stock halal?
To determine whether it’s permissible for Muslim investors to buy Google stock, we will examine Islamic finance guidelines, Google’s business activities, and its financial strength.
Google, which was founded in 1998, is a part of Alphabet. Google mainly provides internet services like search, ads, maps, YouTube, Android, Chrome, Google Play, Google Services, and Google Cloud. Google Cloud offers various services that help businesses manage their IT and data-related tasks more efficiently.
Google Ads is a significant contributor to Google’s earnings, generating revenue from ads displayed across its various platforms. Additionally, Google earns revenue from digital content sales, including applications, movies, and books. Hardware products, such as smartphones like Pixel, Chromecast, Google Nest, and Pixelbook, also contribute to their income.
Examining Google Stock Sharia Compliance
Before determining whether Google stock is halal, we need to examine whether Google as a company complies with Sharia guidelines. These guidelines prohibit activities involving interest (riba/usury), extreme uncertainty (gharar), gambling (maysir), and involvement in haram activities such as alcohol, pork, cigarettes, and weapons. Additionally, Islamic law discourages investing in companies that are primarily reliant on debt. This analysis will help us understand Google’s business activities and financial strength.
Google Business Activities
Google generates revenue through advertising on its online platform, which includes ads on Google-owned properties and partner sites. In Islamic law, advertising is generally considered halal, but it can become haram if it promotes forbidden items like alcohol, gambling, or interest-based loans. While most of Google’s advertising promotes permissible products, it also includes some haram products like alcoholic drinks, pork-based products, and pork sausages, casinos, gambling websites, or lottery services, interest-Based financial services, and more, making its stock an area of debate.
Google’s technology, like its search engine and Google Cloud Platform (GCP), is generally considered permissible in Islam. These services can store data, use machine learning, and provide database backup. However, some users may be involved in haram activities, such as banking or casinos, raising questions about investing in Google stock.
Financial Strength
As of October 2023, Google’s operating margin was 25.49%. With $26.45 billion in total debt and $383.04 billion in total assets as of June 2023, Google’s debt-to-asset ratio stands at 6.89%. These numbers indicate that Google is financially robust, as its operating margin demonstrates profitability, and the low debt-to-asset ratio suggests a strong financial position.
Is Google Stock Halal?
Based on our research, investing in Google stock is questionable. While it boasts strong financial metrics and avoids interest, gambling, and speculation, its advertising and technology promote both halal and haram products and services. We recommend exploring more Halal investment options such as Tesla and Apple stocks. However, conducting thorough research and consulting with Islamic scholars and financial experts is crucial for informed decision-making.
In addition, Musaffa, an online stock screener platform that enables users to monitor stocks from Sharia-compliant companies on global exchanges, has identified Google stock as potentially problematic from a Sharia perspective. They advise Muslim investors to avoid such questionable investments.
Conclusion
In conclusion, the question ‘Is Google stock halal?’ is a complex one. While Google’s strong financial metrics and avoidance of interest, gambling, and speculation make it seem suitable for Islamic investment, the presence of both halal and haram products and services in its advertising and technology is cause for concern. As an alternative, we recommend exploring more Halal investment options, such as Tesla and Apple stocks, to align better with Islamic principles. Nonetheless, to make an informed decision, conducting thorough research and consulting with Islamic scholars and financial experts is essential. Additionally, online stock screener platform Musaffa has identified Google stock as potentially problematic from a Sharia perspective, advising Muslim investors to exercise caution when considering such investments.
