According to The Wall Street Journal, tech big Alphabet (GOOGL) is buying cybersecurity startup Wizz in a deal that, curiously, is predicted to be value round $23 billion, making it the corporate’s largest acquisition but.
Basis of the transaction
The acquisition is strategically helpful to Alphabet as a result of Wiz’s cloud-based cybersecurity software program will improve Alphabet’s cloud computing companies.
Although Alphabet dominates search and internet advertising, it has lagged behind rivals in cloud computing, so the corporate has been investing aggressively in cloud expertise to spice up its presence on this fast-growing area. The acquisition of Wiz ought to assist GOOGL strengthen its place within the cloud area.
It’s value noting that Alphabet acquired cybersecurity firm Mandiant in 2022 for about $5.4 billion.
What is your worth goal for GOOGL inventory?
Alphabet shares have risen about 33% to date this yr. The firm’s cost-cutting efforts and investments in synthetic intelligence have supported the inventory. Additionally, the corporate has a powerful purchase consensus score on TipRanks, based mostly on 32 purchase suggestions and 6 maintain suggestions.
The common analyst goal worth for GOOGL shares is $199.97, suggesting a possible upside of 8.052% from present ranges.
Disclosure