In today’s digital economy, keeping data and systems secure has become one of the most important responsibilities for companies. As businesses and governments move operations to the cloud and increasingly adopt productive AI, the need for robust cybersecurity platforms that can monitor and defend cloud-wide environments is increasing.
Sensing this change, Google has taken a bold step. The company has officially closed its $32 billion acquisition of Israeli cybersecurity firm Wiz, the largest deal in its history. First announced in March 2025, the acquisition aims to strengthen Google Cloud’s security capabilities as organizations seek faster and safer ways to build cloud and artificial intelligence (AI) platforms.
Wiz will now operate on Google Cloud while continuing to support other major platforms such as Amazon Web Services (AWS), Microsoft Azure, and Oracle Cloud, maintaining its open, multi-cloud approach.
Alphabet ( GOOG ) ( GOOGL ) CEO Sundar Pichai’s partnership is a big step toward stronger cloud security What does this big cybersecurity bet mean for GOOGL stock, and how should investors approach it now?
The alphabet hardly needs an introduction in international technology circles. Headquartered in California and valued at nearly $3.7 trillion by market cap, it is one of Silicon Valley’s most influential forces. Beyond search, Alphabet has expanded into AI, cloud infrastructure, autonomous mobility through Waymo, and advanced research led by DeepMind. Its Gemini models not only reflect its willingness to join the AI race, but define it.
The market noted. New confidence in Google’s AI execution and cloud momentum has supported strong stock performance, comfortably securing Alphabet’s place among the world’s most valuable companies.
Shares of Google parent have been on a remarkable rise over the past year, though the ride hasn’t been entirely smooth lately. The stock hit a 52-week high of $349 in February, reflecting strong optimism about Alphabet’s expanding AI ecosystem.
However, since then, the movement has cooled somewhat. GOOGL has fallen about 13% since that peak and is at -3.19% for the year so far, as investors debate how quickly the company’s heavy AI investments will turn a profit.
Still, zoom in a bit, and the trend looks pretty healthy. Over the past 12 months, the stock is up more than 81.34%, with gains of nearly 25.84% over the past six months alone.
Technically, the chart suggests that the stock may simply be pausing to digest recent gains after a major rally. The 14-day RSI has rebounded to around 41.85 after nearly touching the oversold area in mid-February, indicating that momentum is stabilizing. Meanwhile, the MACD oscillator turns positive again, the MACD line crosses above the signal line and green histogram bars appear.
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After a strong run over the past year, Alphabet may seem a bit pricey at first glance. The stock trades at about 26.7 times adjusted earnings and about 7.9 times sales, slightly above the usual levels and technical peers. But the story below seems even stronger. Google Cloud is growing at a healthy pace, while Alphabet’s extensive ecosystem and strong balance sheet provide stability. Furthermore, it is no longer a single-engine company. With top and bottom lines expected to grow, today’s valuation may look more reasonable over time.
Alphabet 2025 closed on a strong note. It released its fourth-quarter report on February 4, reporting revenue of $113.8 billion, up 18% year-over-year (YOY), comfortably beating expectations. The bottom line was even stronger, with EPS rising 31% year-over-year to $2.82, as both search and cloud delivered strong performance. Looking forward to a full year, Alphabet has passed a major milestone. Annual revenue topped $400 billion for the first time, with AI-driven capabilities fueling growth in many core businesses.
Most of that power still comes from Google Services — the company’s largest division, which includes search, YouTube, and subscription products. The unit generated revenue of $95.9 billion, up 14% YOY. Search and other advertising revenue rose 17% to $63.1 billion as AI-enhanced results improved user engagement and ad targeting. At the same time, YouTube ads brought in $11.4 billion, a 9% increase despite tough comparisons.
But the main position continues to be Google Cloud. Revenue at the division rose 48% year over year to $17.7 billion, fueled by strong enterprise demand for AI infrastructure. The company also reported a backlog of $240 billion, doubling annually, reflecting long-term AI contracts with businesses.
Profits remained healthy, with operating income up 31% to $31 billion. Still, heavy spending on AI infrastructure weighs on cash flow. Capital expenditures for the year reached $91.4 billion, largely directed toward technical infrastructure—nearly 60% on servers and the remaining 40% on data centers and network equipment.
Even so, Alphabet ended 2025 with $126.8 billion in cash, supporting continued share buybacks and dividends for investors.
Looking ahead, management guided 2026 CapEx to expand AI and cloud capacity to between $175 billion and $185 billion—nearly double 2025 levels. The increase may pressure near-term free cash flow, but management believes strong AI services, search advances, and rising enterprise demand will drive growth.
Wall Street analysts who follow Alphabet see its earnings rising. For FY 2026, EPS is projected to rise around 7.3% YOY to $11.60, before growing another 14.7% YoY to $13.31 in FY 2027.
Google has officially closed its $32 billion all-cash acquisition of Wiz, marking the largest purchase in the company’s history. The cloud security platform will integrate with Google Cloud while continuing to operate under the Wiz brand and maintaining its multi-cloud approach.
Google Cloud currently has about 10% of the cloud infrastructure market, with AWS at about 33% and Microsoft Azure at about 22%. Wiz already has a strong enterprise following and a fast-growing recurring revenue base, giving Google Cloud an immediate credibility boost with large customers who prioritize robust, multi-cloud security.
The idea is to combine Wiz’s cloud security platform with Google’s existing tools, such as its threat intelligence and security operations, to create a unified security offering in cloud and hybrid environments. The deal could help Google Cloud win more enterprise customers, accelerate growth, and gradually close the competitive gap in the global cloud race.
Wall Street is growing more about the alphabet. Wells Fargo’s Ken Gawrilski recently upgraded the stock from an “equal weight” rating to an “overweight,” raising his price target to $387 from $354. The call also comes while the shares have struggled with other Big Seven names recently.
Gavrilski believes that Alphabet needs three ingredients to win in AI; Big data, global distribution, and massive computing power. With products like Google Search and Gemini, as well as its cloud platform, the company has many ways to monetize AI. Also, Alphabet is expanding its AI computing capacity to 35 gigawatts by 2028, up from last year. Meanwhile, Gemini alone could see $12 billion in recurring revenue by the end of 2027, another reason analysts are bullish.
Analysts tracking GOOGL are overall bullish with a consensus rating of “Strong Buy”. Out of 55 analysts, 47 recommend a “strong buy”, three recommend a “moderate buy”, and five play it safe with a “hold” rating.
The average price target of $379.21 suggests a 25% upside potential from here. Meanwhile, the high street target of $420 suggests that GOOGL stock could rise as much as 38.5%.
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Major achievements have often shaped Alphabet’s growth story. A famous example came in 2006, when it bought YouTube for $1.65 billion. Back then it was an unprofitable startup surrounded by copyright concerns. Today, this deal is one of the most successful bets in the history of technology.
The Wiz acquisition may be another such moment. Alphabet can easily absorb the all-cash price tag thanks to its large cash reserves and strong operating cash flow. More importantly, the Wiz Cloud Security Platform can make Google Cloud more attractive to enterprises that want powerful, multi-cloud protection as they expand their AI and cloud workloads. This, in turn, can both win new customers and drive strong security revenue.
Of course, execution will be key. Integrating Wiz with Google’s existing security stack won’t be simple. But if the strategy clicks, the deal could help narrow the cloud gap with competitors. And once the dust settles from the recent market volatility, investors may begin to appreciate the strong combination of assets Alphabet has accumulated, and how the cybersecurity push could fuel the next phase of growth while unlocking long-term value for GOOGL shareholders.
As of the date of publication, Sristi Suman Jayaswal did not hold positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. This article was originally published on Barchart.com
