To The Moon

According to the latest news, $Alphabet(GOOGL)$ $Alphabet(GOOG)$ Google's parent company, has agreed to acquire cybersecurity startup Wiz for at least $32 billion. This will be Google's largest acquisition ever, far exceeding its $12.5 billion purchase of Motorola in 2012.

Acquisition Background

Wiz was founded in 2020 and is a startup focused on cloud computing security. It provides AI-based cybersecurity solutions to help businesses identify and eliminate critical risks on cloud platforms. The company has grown rapidly and achieved a valuation of $12 billion in a funding round in May 2024. This acquisition will help Google enhance its competitiveness in the cloud computing field, especially in the context of the surging demand for computing power driven by generative artificial intelligence.

Significance of the Acquisition

• Enhancing Cloud Computing Business: Google hopes to leverage Wiz's technology and solutions to improve the security of its cloud computing business and attract more enterprise customers.

• Competing with Rivals: This acquisition is also seen as an important move for Google to compete with Amazon and Microsoft in the cloud computing market.

• Regulatory Challenges: Given the massive scale of the transaction and Google's ongoing antitrust lawsuits, the acquisition is likely to face strict scrutiny from regulatory authorities.

Wiz's Development History

Since its inception, Wiz has grown rapidly, completing a $1 billion funding round in May 2024 with a valuation of $12 billion. The company has also expanded its technological capabilities through acquisitions of other startups, such as Gem Security and Dazz in 2024.

Impact on Google's Valuation Over the Next 12 Months

Positive Impacts:

• Cloud Business Growth Potential: Wiz's technology and customer base will significantly enhance the security capabilities of Google Cloud, especially in the context of the surging demand for computing power driven by generative artificial intelligence. This may drive further growth in Google's cloud business.

• Enhanced Market Competitiveness: By integrating Wiz's technology, Google is expected to better compete with Amazon AWS and Microsoft Azure in the cloud computing market, thereby increasing its market share.

• Long-term Value Creation: Analysts are optimistic about Google's long-term growth prospects, believing that its investments in cloud computing, advertising, and artificial intelligence will continue to create value.

Potential Risks:

Regulatory Review: Given Google's ongoing antitrust lawsuits, the acquisition is likely to face strict scrutiny from regulatory authorities, which may even trigger new antitrust concerns.

Integration Risks: Large-scale acquisitions often come with integration challenges, including cultural differences, technological integration, and management complexities.

Google's Valuation Forecast for the Next 12 Months

• Current Market Valuation: As of March 17, 2025, Google's stock price was $164.29 per share, with a total market value of approximately $2 trillion.

• Analyst Predictions: Based on the average target price from analysts, Google's stock price over the next 12 months is expected to be between $155 and $161. If the acquisition of Wiz is successful and integration goes smoothly, Google's cloud business is expected to achieve higher growth, which will further boost its valuation.

• Risk and Reward: Although the acquisition of Wiz may bring significant growth potential, regulatory review and integration risks should not be overlooked. If regulatory authorities are open to the transaction, Google's valuation is expected to increase further from its current level.

Google Stock Price Expectations for 2025

Current Stock Price: As of March 17, 2025, Google's stock price is $164.29 per share.

Analyst Predictions:

• Based on the 12-month target prices from 43 analysts, Google's average target price is $210.62 per share, with the highest target price at $230.

• CoinCodex Forecast: Google's stock price for 2025 is expected to range from $204.65 to $216.10, with an average expectation of $209.11.

• StockScan Forecast: The average stock price for Google in 2025 is predicted to be $220.66, with the highest forecast at $249.62 and the lowest at $191.70.

Market Expectations:

• In the long term, Google's stock price is expected to reach $200 by the end of 2025 and $250 by the end of 2028.

• If Google's earnings for the 2025 fiscal year are consistent with the current consensus, the target price is approximately $215.5 per share, which implies an upside potential of about 28.6% from the current stock price.

Risk and Reward:

• Although the acquisition of Wiz may bring significant growth potential, regulatory review and integration risks should not be overlooked.

• Google plans to invest approximately $75 billion in capital expenditures in 2025, which may put some pressure on profit growth.

Overall, analysts are relatively optimistic about $Alphabet(GOOG)$ 's stock price for 2025, expecting it to range between $200 and $230. However, the outcome of the Wiz acquisition and changes in the regulatory environment may have a significant impact on the stock price.