Is Failed Acquisition of Wiz A Setback For Google
$Alphabet(GOOG)$’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.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
- Barcode·07-23Interesting analysis on the Wiz deal! Google's cybersecurity strategy remains strong despite this setback. 🍀 - BC2Report
- CyrilDavy·07-23Awesome analysis1Report