Google Stock Tumbles 4% After $32B Wiz Acquisition, Breaks Key Support
Stock markets have opened lower, but some are falling harder, with the Google stock slipping 5% earlier, despite acquiring Wiz for $32 bn.
Stock markets have opened lower, but some are falling harder, with the Google stock slipping 5% earlier, despite acquiring cybersecurity group Wiz for $32 billion.
Alphabet Struggles Amid Market Weakness and Regulatory Pressure
Google’s parent company, Alphabet (GOOGL), saw its stock drop to $156.72, down 4% intraday, before recovering some losses. This decline follows a two-year rally that peaked in early February at $206.69, after which Google’s stock reversed downward and has since lost nearly 25% of its value.
Google Stock Chart Daily – Will the 200 SMA Be Broken Today?
Technical indicators have highlighted Google’s struggles, with shares falling below the 100-day moving average (red) at $174 in late February, signaling increased selling pressure. The stock remains under pressure due to regulatory challenges, as the U.S. Department of Justice (DOJ) recently abandoned part of its antitrust case against Google while still pushing for the sale of its Chrome browser. This decision has fueled investor concerns over Google’s long-term dominance in key digital markets.
As selling pressure intensifies, Google now approaches its 200-day moving average, a critical technical level. If this support fails, the stock may target its 2024 low of $148, further extending the downward trend.
Wiz Acquisition Fails to Boost Investor Confidence
Despite recent struggles, Alphabet has made its largest-ever acquisition, agreeing to acquire cloud security firm Wiz for $32 billion, in order to incorporate it into the Google Cloud. The deal is aimed at strengthening Google’s position in the cloud computing sector, where it competes with Amazon Web Services (AWS) and Microsoft Azure.
Wiz specializes in cloud security, helping organizations detect threats across cloud storage providers. Interestingly, Google had previously attempted to buy Wiz for $23 billion last year, but the offer was rejected. Now, Wiz has accepted Google’s revised deal, making it one of the most expensive cybersecurity acquisitions in history.
However, despite the strategic benefits, the Wiz acquisition has failed to provide a boost to Google’s stock, which remains one of the worst performers among major tech companies. Investors appear concerned about the high price tag, as well as the broader challenges facing Alphabet, including regulatory uncertainty and slowing ad revenue growth.
Conclusion: Google Faces Key Test as Stock Struggles
Alphabet’s stock is at a critical juncture, with technical indicators pointing toward further downside if key support levels break. The Wiz acquisition, while a strategic move for cloud expansion, has yet to restore investor confidence, as regulatory challenges and market weakness continue to weigh on the stock.
With Google’s cloud ambitions expanding but its stock struggling, the coming weeks will be crucial in determining whether this decline is a short-term correction or the start of a deeper pullback.
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