To The Moon

$Alphabet(GOOG)$’s plan of $23 billion acquisition of cybersecurity startup Wiz falling apart is a surprising development. Let's analyze the implications of this failed deal and its potential impact on the stock price.

Google's interest in Wiz reflected the growing importance of cybersecurity within the tech industry. The acquisition would have bolstered Google's cloud business and strengthened its position in the cybersecurity market. However, the decision to walk away suggests either a reassessment of the deal's value or a shift in strategic priorities.

GOOG Daily Chart

Looking at the GOOG chart, we see the price recently broke down from a previous trendline and is now retesting it. This indicates a potential period of consolidation. If the price fails to break back above the trendline, it could signal further weakness.

While the Wiz acquisition didn't materialize, it's unlikely to derail Google's overall cybersecurity strategy. The company has made significant investments in its own security products and services. Furthermore, Google's cloud business, Google Cloud, is a major player in the cybersecurity market, offering a range of solutions to protect businesses and organizations.

Mandiant was the last acquisition of a cybersecurity company in recent years at $5.4bn

The failed Wiz acquisition is a minor setback for Google, but it doesn't fundamentally change the company's strong position in the tech industry. The recent price pullback could present a buying opportunity for long-term investors, especially if the price finds support and rebounds.

Disclaimer: This is just my analysis, and the market is unpredictable. Do your own research before making any investment decisions. While the Wiz acquisition didn't materialize, Google's overall business remains strong, and the recent price pullback might offer a good entry point for those with a long-term perspective.