GOOGL
💰 Google is acquiring a company named WIZ for $30 billion, significantly higher than the $23 billion offer last year.
📉 The market reacted negatively to the news, with NASDAQ generally trending downwards.
🤔 Questions arise about why Google is paying such a high price for WIZ, which was founded in 2020 and is valued at over 60 times its sales.
@bernardodegarcia:
“The shares of Google, beyond reacting positively, are reacting quite negatively, reaching $8. Google was buying a company called WIZ, which will allow it to increase its positioning in the Cloud, for 30,000 million dollars. Google was trying to buy this company last year around September for 23,000 million dollars, and WIZ said no. Now, the most interesting thing is this company did not exist in 2020. This company was born in 2020. So, in 4 years, the company has gone from 00000 million dollars to 30,000 million dollars, and Google is paying for it now. Question: why hasn’t Google made WIZ, and why is Google paying 30,000 million dollars? And WIZ’s valuations are a bit… I think it’s trading at about 60-something times sales, more or less. The figures are not exact since WIZ is a private company. But well, anyway, the more you know. The markets didn’t like it at all. We have Google, also a bit more of the same. It’s trying to recover from the worst.”
In this video, @bernardodegarcia discusses Google. Viewers can watch the exact part of the YouTube video where the stock is discussed below.
View the video on YouTube.
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