Google parent Alphabet Inc (NASDAQ:GOOGL) acquired cloud security startup Wiz for $32 billion in an all-cash transaction.

Here are some key analyst takeaways.

Check out other analyst stock ratings.

The Cloud-Native Application Protection Platform (CNAPP) market is "among the fastest-growing category within cybersecurity currently and Wiz is used by around 50% of Fortune 100 companies, the analyst stated. "More recently, the company has made a push into the AI Security Posture Management (AI-SPM) business- helping to further increase data security for customers’ AI models, which can consume massive amounts of data," he further wrote.

Rosenblatt Securities: Wiz's revenues are widely expected to grow by around 50% year-on-year to near $1,000 billion in 2025, Crockett said. The cloud security firm's multi-cloud capabilities, which Alphabet intends to retain post-acquisition, is "clearly helpful for a rising share-gainer like Google Cloud," he added.

While Wiz's revenue growth may be modest compared to Google Cloud, it represents growth in an area "that is very important to investor sentiment, and where investors appear to be twitchy right now around small wiggles in quarterly growth rates," the analyst wrote. Although the acquisition will help Google Cloud, there are antitrust risks and concerns around the price being paid for the purchase, he further stated.

Price Action: Shares of Alphabet had risen by 0.73% to $161.84 at the time of publication on Wednesday.

Read More:

• NVIDIA Teams Up with GE, Google, IBM, And CrowdStrike To Redefine AI And Quantum Technology

Image: Shutterstock