Alphabet Stock: Shares Tumble Amid Major Acquisition News

Alphabet's stock experienced significant volatility this week, closing down 5.07% at $159.00 after falling as low as $156.72 during trading. Despite this setback, market experts maintain an optimistic outlook with an average price target of $214.14, suggesting substantial upside potential from current levels. The stock currently sits about 31% below its 52-week high of $207.05 reached in February 2025, though it remains 7.5% above its March low. This decline came as the company announced its largest-ever acquisition - a $32 billion all-cash purchase of cloud security firm Wiz, Inc., substantially higher than Google's initial offer of $23 billion last year. The transaction, expected to conclude in 2026, dwarfs previous notable acquisitions including Motorola Mobility ($12.5 billion) and Mandiant ($5.4 billion).

Strong Fundamentals Despite Market Reaction

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The company's financial performance continues to show robust growth despite the stock's recent weakness. In Q4 2024, Alphabet reported earnings per share of $2.17, significantly higher than the $1.66 recorded in the same period last year. Revenue also climbed by 11.94% to $96.45 billion. Analysts project full-year 2025 earnings of $8.92 per share, while shareholders can anticipate an increased dividend of $0.662, up from $0.600 in the previous year. The upcoming Q1 2025 results, scheduled for April 29, could provide fresh momentum for the stock. Through the Wiz acquisition, Google aims to enhance its cloud security capabilities, improve multi-cloud platform usage, and develop automated security solutions.