In today’s digital economy, keeping data and systems secure has become one of the most important responsibilities for companies. As businesses and governments shift operations to the cloud and increasingly adopt generative AI, the need for powerful cybersecurity platforms that can monitor and defend vast cloud environments has surged.

Sensing that shift, Google has made a bold move. 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 is aimed at strengthening Google Cloud’s security capabilities as organizations look for faster and safer ways to build across cloud and artificial intelligence (AI) platforms.

Wiz will now operate within 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.

With Alphabet (GOOG) (GOOGL) CEO Sundar Pichai calling the partnership a major step toward stronger cloud security, what could this massive cybersecurity bet mean for GOOGL stock, and how should investors approach it now?

About Alphabet Stock

Alphabet hardly needs an introduction in global technology circles. Headquartered in California and valued at roughly $3.7 trillion by market cap, it stands as one of Silicon Valley’s most influential forces. Far beyond Search, Alphabet has expanded into AI, cloud infrastructure, autonomous mobility through Waymo, and advanced research led by DeepMind. Its Gemini models reflect an ambition not just to join the AI race, but to define it.

The market has taken note. Renewed confidence in Google’s AI execution and cloud momentum has supported a strong stock performance, securing Alphabet’s place comfortably within the world’s most valuable companies.

Shares of the Google parent have been on a remarkable climb over the past year, though the ride has not been perfectly smooth lately. The stock surged to a 52-week high at $349 in February, reflecting strong optimism around Alphabet’s expanding AI ecosystem.

Since then, however, the momentum has cooled a bit. GOOGL has slipped about 13% from that peak and is at -3.19% for the year so far, as investors debate how quickly the company’s heavy AI investments will translate into profits.

Still, zoom out a little, and the trend looks far healthier. Over the past 12 months, the stock is up more than 81.34%, with gains of roughly 25.84% in the last six months alone. 

Technically, the chart suggests the stock may simply be pausing to digest recent gains after a big rally. The 14-day RSI has rebounded to around 41.85 after nearly touching the oversold territory in mid-February, signaling that momentum is stabilizing. Meanwhile, the MACD oscillator is turning positive again, with the MACD line crossing above the signal line and green histogram bars emerging.

After a solid run over the past year, Alphabet might look a bit pricey at first glance. The stock trades around 26.7 times forward adjusted earnings and about 7.9 times forward sales, slightly above its usual levels and tech peers. But the story underneath still looks strong. Google Cloud continues to grow at a healthy pace, while Alphabet’s broader ecosystem and strong balance sheet provide stability. Plus, it is no longer a single-engine company either. With top and bottom lines expected to grow, today’s valuation may quietly look more reasonable over time.

A Closer Look at Alphabet’s Stellar Q4 Report

Alphabet wrapped up 2025 on a powerful note. It released its fourth-quarter report on Feb. 4, generating revenue of $113.8 billion, up 18% year-over-year (YOY), comfortably beating expectations. The bottom line was even stronger, with EPS rising 31% annually to $2.82, as both Search and Cloud delivered solid performance. Looking at the full year, Alphabet crossed a major milestone. Annual revenue topped $400 billion for the first time, with AI-driven capabilities boosting growth across several core businesses.

Most of that strength still comes from Google Services – the company’s largest segment, which includes Search, YouTube, and subscription products. The unit generated $95.9 billion in revenue, up 14% YOY. Search and other advertising revenue climbed 17% to $63.1 billion as AI-enhanced results improved user engagement and ad targeting. Meanwhile, YouTube advertising brought in $11.4 billion, rising 9% despite tough comparisons.

But the real standout continues to be Google Cloud. Revenue in the division surged 48% annually to $17.7 billion, fueled by strong enterprise demand for AI infrastructure. The company also reported a backlog of $240 billion, more than doubling annually, reflecting long-term AI contracts with businesses.

Profitability remained healthy, with operating income jumping 31% to $31 billion. Still, heavy spending on AI infrastructure weighed on cash flow. Capital expenditures reached $91.4 billion for the year, largely funneled into technical infrastructure – roughly 60% into servers and the remaining 40% into data centers and networking equipment.

Even so, Alphabet ended 2025 with over $126.8 billion in cash, supporting continued share buybacks and dividends for investors.

Looking ahead, management guided 2026 CapEx to between $175 billion and 185 billion – nearly double 2025 levels – to expand AI and cloud capacity. The surge may pressure near-term free cash flow, but leadership believes stronger AI services, Search improvements, and rising enterprise demand will fuel growth ahead.

Wall Street analysts tracking Alphabet see its earnings rising. For fiscal 2026, EPS is projected to rise about 7.3% YOY to $11.60, before growing by another 14.7% annually to $13.31 in fiscal 2027.

Why Wiz Matters for Alphabet

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 join Google Cloud while continuing to operate under the Wiz brand and maintain its multi-cloud approach.

Google Cloud currently holds roughly 10% of the cloud infrastructure market, far behind AWS at about 33% and Microsoft Azure at around 22%. Wiz already has strong enterprise traction and a rapidly growing recurring revenue base, giving Google Cloud an instant credibility boost with large customers that prioritize strong, multi-cloud security.

The idea is to combine Wiz’s cloud security platform with Google’s existing tools, like its threat intelligence and security operations, to create a unified security offering across 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.

What Do Analysts Expect for Alphabet Stock?

Wall Street is growing more bullish on Alphabet. Ken Gawrelski of Wells Fargo recently upgraded the stock to “Overweight” from “Equal-Weight” rating, lifting his price target to $387 from $354. The call comes even as the shares have struggled lately alongside other Magnificent Seven names.

Gawrelski believes Alphabet has the three ingredients needed to win in AI; massive data, global distribution, and huge computing power. With products like Google Search and Gemini, as well as its cloud platform, the company has multiple ways to monetize AI. Also, Alphabet is expanding its AI compute capacity to 35 gigawatts by 2028, up impressively from last year. Meanwhile, Gemini alone could see recurring revenue jump to $12 billion by 2027, which is another reason analysts see upside ahead.

Analysts monitoring GOOGL are bullish, with a consensus rating of “Strong Buy” overall. Out of 55 analysts, 47 recommend a “Strong Buy,” three suggest a “Moderate Buy,” and five are playing it safe with a “Hold” rating.

The average price target of $379.21 suggests a 25% upside potential from here. Meanwhile, the Street-high target of $420 suggests GOOGL stock could rise as much as 38.5%.

Final Thoughts on GOOGL

Big acquisitions have often shaped the growth story of Alphabet. One famous example came in 2006, when it bought YouTube for $1.65 billion. Back then it was an unprofitable startup surrounded by copyright worries. Today, that deal stands as one of the most successful bets in tech history.

The Wiz acquisition could be another such moment. Alphabet can easily absorb the all-cash price tag thanks to its huge cash reserves and strong operating cash flow. More importantly, Wiz’s cloud security platform could make Google Cloud far more attractive to enterprises that want powerful, multi-cloud protection as they expand AI and cloud workloads. That, in turn, could drive both new customer wins and stronger security revenue.

Of course, execution will be key. Integrating Wiz with Google’s existing security stack will not be simple. But if the strategy clicks, the deal could help narrow the cloud gap with rivals. And once the dust from recent market volatility settles, investors may begin to appreciate the powerful mix of assets Alphabet has assembled, and how this cybersecurity push could fuel its next growth phase while unlocking long-term value for GOOGL shareholders.

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