Alphabet, the parent company of Google, has been in the spotlight recently due to its $32 billion acquisition of the cybersecurity firm Wiz, announced on March 18, 2025. This all-cash deal, Alphabet’s largest ever, aims to bolster its Google Cloud unit’s cybersecurity offerings in the competitive cloud-computing race against Amazon and Microsoft. However, the market reaction has been lukewarm, with GOOGL shares dropping nearly 3% following the announcement and continuing to face downward pressure. On March 20, 2025, the stock closed at $162.80, down 0.67% from the previous day, reflecting broader market concerns and a 15.1% year-to-date decline. Investors appear cautious about the high price tag and Alphabet’s significant AI and cloud infrastructure spending amidst a pullback in tech stocks.
The Wiz acquisition is seen as a strategic move to strengthen Alphabet’s cloud business, which generated over $43 billion in revenue last year, with Google Cloud revenue specifically rising 30% to $12 billion in fiscal Q4 2024. Analysts note that Wiz’s integration could enhance Google Cloud’s appeal by offering advanced security solutions, a critical factor as enterprises prioritize cybersecurity following events like the global CrowdStrike outage. Despite this, Alphabet’s stock is trading at a forward P/E of around 17, the lowest among the “Magnificent 7” tech giants, and a PEG ratio of 1.18, suggesting it may be undervalued relative to its growth potential.
GOOGL is testing the 155-165 zone of the upside support, which is a retest of a previous upside resistance. An extension higher from here could lead to a new high and an extension of the long-term fifth wave. This monthly chart indicates that we will probably have a sideways consolidation before anything. Learn to Trade Stocks profitably.
The GOOGL weekly chart below reveal an uptrend broadening wedge line test and bounce. At this point, buy positions have a greater probability of success. If we get a confirmed break above 168, we should see an acceleration higher for a 190 test. The invalidation of an immediate extension higher will come upon a break below 150. This is offering to us a nice trading opportunity.
It is a fact that a strong downside support for Q1 2025 is 150 and If we get a confirmation of a breakout and a sustained extension below this level we could see a reversal downside. You can take the long trade here with a stop loss below 155 as the probability for a swing higher is greater. For inquiries about account management or copy trading please write to [email protected] or contact me on WhatsApp or Live chat.
