Alphabet to acquire Wiz for $32B, boosts Google Cloud's security

From Zacks Investment Research: 2025-03-20 06:10:25

Alphabet’s Google to Acquire Wiz for $32B, enhancing Google Cloud’s security offerings and expanding its clientele. Despite the $32B deal being Alphabet’s largest, investors reacted negatively with GOOGL shares falling 2.2%. However, the acquisition is expected to boost Google Cloud’s competitive position against Amazon and Microsoft in the cloud computing space.

Alphabet leverages AI with Gemini models to attract new clients and deepen product adoption. The company’s AI capabilities are driving innovation and product enhancements, with Gemini now available to mobile users. Alphabet’s earnings estimates show steady growth, with a 10.7% year-over-year growth expected for 2025.

Alphabet’s stock is currently overvalued, trading at a premium compared to industry averages. Despite facing regulatory challenges and a bearish trend in the stock price, Alphabet’s dominant position in search engines and cloud computing present long-term growth opportunities. With a Zacks Rank of #3 (Hold), investors may want to wait for a more favorable entry point.



Read more at Zacks Investment Research: The Zacks Analyst Blog Highlights Alphabet, Amazon, Microsoft and Oracle – March 20, 2025