Why Alphabet Stock Is Falling Today

Core Viewpoint - Alphabet announced the acquisition of cloud security company Wiz for $32 billion in an all-cash deal, marking its largest acquisition to date, which led to a decline in its stock price by 3.2% [1][4]. Group 1: Acquisition Details - The acquisition price of $32 billion represents a nearly 40% increase from the previous offer of $23 billion made last year, which Wiz rejected in favor of pursuing an IPO [2][4]. - Wiz had an annual recurring revenue of $500 million as of September 2024, raising questions among investors regarding the justification for such a large acquisition [5]. Group 2: Strategic Implications - Wiz will be integrated into Google Cloud, enhancing its security offerings and aligning with Google Cloud's vision to simplify cybersecurity for organizations of all sizes [3]. - The acquisition is seen as a strategic move for Alphabet to strengthen its position in the cloud market, where it currently ranks third behind Amazon and Microsoft [3].