Google is acquiring Wiz, a cloud cybersecurity company, for $32 billion. Let’s break down everything Joseph shared in his latest video, including why Google is paying this much, how it fits into their strategy, and how investors are reacting.
The Deal at a Glance
- Google Acquires Wiz
💰 Price: $32 billion
⚡ Type: All-cash deal
📉 Market Reaction: Google stock down 2.6% on the news
Joseph notes this is Google’s largest acquisition since it bought Motorola and emphasizes the high price tag, especially since they offered $23 billion just a year ago.
Why Wiz?
Google explains that cybersecurity risks are accelerating, especially in a world dominated by multicloud and hybrid deployments. AI-powered threats are making traditional defences obsolete.
🔒 Wiz offers:
- A seamless cloud security platform
- Protection across multicloud and on-prem environments
- Code-to-cloud security and runtime defense
- Rapid scans, threat detection, and attack prevention
Wiz’s core advantage? Helping enterprises secure apps before deployment, making them a key player in modern security solutions.
Google’s Strategy
Joseph explains Google is playing catch-up in the cloud market. They sit at #3 behind Amazon AWS and Microsoft Azure. Wiz helps them:
✅ Compete for multicloud customers
✅ Offer lower costs and better security
✅ Attract more enterprise clients who want flexibility and security
👉 This isn’t just about revenue—Joseph points out it’s about stealing market share from AWS and Azure.
Financials and Growth
Wiz is:
- Expected to generate $1 billion in revenue
- Growing revenue 2x per year
- Compared to CrowdStrike (worth $90 billion), Wiz is 1/4 the size, but growing faster
Joseph highlights:
- Google offered $23B last year; Wiz waited, doubled revenue, and now gets $9 billion more
- Google can easily afford it with $85 billion net cash
- Instead of more buybacks or holding cash, Joseph supports this strategic acquisition
Investor Sentiment
Investors are nervous:
- Google stock is down 3%
- Concerns about high CapEx, AI search risks, and now an expensive acquisition
But Joseph reassures: - Google still has strong properties (YouTube, Android, Search)
- It trades at a forward P/E of 18, with potential upside
Amazon Zoox Robotaxis
Joseph also covers Amazon’s Zoox, now testing robotaxis in California.
- Symmetrical design, uses LiDAR & cameras
- Competing with Waymo and Tesla
- Launching early rider programs in San Francisco and Las Vegas
Joseph believes Zoox’s slow and cautious strategy contrasts Tesla’s fast and bold approach.
Mark Rober Controversy
Mark Rober released a video comparing Tesla’s Autopilot to LiDAR systems.
- Tesla fans accused him of bias
- Criticized for testing Autopilot, not Full Self-Driving
- Allegations of multiple takes, possible Luminar sponsorship (denied by Rober)
Joseph breaks it down:
- Rober says he has no financial ties to Luminar
- Admits to multiple takes, but insists data is honest
- Joseph calls for reasonable debate, not career destruction
Pressures Chinese Suppliers
- Costco leveraging low SKU count (4,000) to pressure Chinese suppliers on pricing
- Fewer SKUs = more buying power per item
- Allows Costco to keep prices low, unlike Amazon or Walmart with 140,000+ SKUs
Netflix Upgrade
- MoffettNathanson upgrades Netflix
- Price target raised from $850 to $1,100
- Declares Netflix has won the streaming war
Joseph’s Conclusion:
Joseph supports Google’s Wiz deal despite the price. It’s strategic, enhances Google Cloud, and helps them compete in a multicloud world.
He’s still bullish on Google, Costco, and Netflix, despite market corrections.
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