- Bull Street
- Posts
- 📈 Google's $32B Wiz Deal
📈 Google's $32B Wiz Deal
Oracle in advanced talks to buy TikTok, Tesla shares fall again, Dell CEO states PC refresh cycle is starting, Nvidia and GM announce deal, Google Bets Big on Cloud Security
Evelio Silvera
March 19, 2025
Good morning.
⚡ The Fast Five → Oracle in advanced talks to buy TikTok, Tesla shares fall again, Dell CEO states PC refresh cycle is starting, Nvidia and GM announce deal, Google Bets Big on Cloud Security
🔎 Market Trends → Wall Street ends lower on tariff worry as Fed decision eyed; US Futures Steady Ahead of Fed Decision
And now…
⏱️ Your 5-minute briefing for Wednesday, March 19, 2025:
MARKET BRIEF
Before the Open
As of market close 03/18/2025.
Pre-Market
| 
|
Fear & Greed
Markets in Review
Markets Slip as Fed Meeting Kicks Off—Investors Eye Rate Path
Stocks retreated Tuesday ahead of the Federal Reserve’s rate decision, with the Nasdaq falling 1.7% to 17,504.1, the S&P 500 down 1.1% to 5,614.7, and the Dow dropping 0.6% to 41,581.3. Communication services led the decline, while energy and health care managed gains.
The Big Picture:
The Fed’s two-day policy meeting is front and center, with markets widely expecting rates to remain unchanged. But investors are looking for clues on when rate cuts may resume and whether policymakers revise their economic outlook.
Meanwhile, Treasury yields edged lower, with the 10-year yield down 2.1 basis points to 4.28%, as investors positioned for a potentially cautious Fed stance. Housing data showed strong growth in single- and multi-family projects, though consumer sentiment remains fragile, according to TD Economics.
Despite a stronger-than-expected industrial production report, Oxford Economics warns that the sector may not fully rebound until 2026, when tariffs ease and interest rates begin their long-anticipated decline.
Market Movers:
Tesla (TSLA) slid 5.3%, among the worst S&P 500 performers, as Elon Musk’s political involvement may be weighing on brand perception and demand, per Oppenheimer.
Tech heavyweights Nvidia (NVDA), Microsoft (MSFT), and Apple (AAPL) declined, as rising interest rate concerns pressured growth stocks.
Tencent Music (TME) surged nearly 16%, after posting strong Q4 results, fueled by subscription growth and higher advertising revenue.
Google parent Alphabet (GOOG) announced a $32 billion acquisition of cybersecurity startup Wiz, reinforcing its cloud security ambitions.
What They’re Saying:
"We do not expect major changes to the FOMC’s median economic projections, but what we do expect leans pessimistic," HSBC noted in a client report.
WHAT WE’RE WATCHING
Events
Today: Federal Reserve - Interest Rates - 2:00pm
Why You Should Care: Short term interest rates are the paramount factor in currency valuation - traders look at most other indicators merely to predict how rates will change in the future.
Today: Federal Reserve - Summary of Economic Projections (SEP) - 2:00pm
Why You Should Care: It's the primary tool the Fed uses to communicate their economic and monetary projections to investors.
Today: Federal Reserve - Federal Open Market Committee (FOMC) - 2:00pm
Why You Should Care: It's the primary tool the FOMC uses to communicate with investors about monetary policy. It contains the outcome of their vote on interest rates and other policy measures, along with commentary about the economic conditions that influenced their votes. Most importantly, it discusses the economic outlook and offers clues on the outcome of future votes.
Today: Federal Reserve - Federal Open Market Committee (FOMC) Press Conference - 2:30pm
Why You Should Care: It's among the primary methods the Fed uses to communicate with investors regarding monetary policy. It covers in detail the factors that affected the most recent interest rate and other policy decisions, along with commentary about economic conditions such as the future growth outlook and inflation. Most importantly, it provides clues regarding future monetary policy.
Earnings Reports
Today: General Mills, Five Below, Signet Jewelers, Guess?, Ollie’s Bargain Outlet, Prudential, GDS Holdings, Sportradar
Tomorrow: Nike, FedEx, Darden Restaurants, Academy Sports + Outdoors, Accenture, Micron Technology, Lennar
MARKET BRIEF
Leading News
Google Bets Big on Cloud Security: $32B Wiz Deal Signals AI Security Gold Rush
Photo Credit: Pawel Zyrwinski
Why it matters:
Google's record acquisition at $32 billion reveals where the smart money sees the next wave of tech value creation — at the intersection of cloud, AI, and cybersecurity.
Zoom Out:
Google parent Alphabet (GOOGL) is making its largest acquisition ever, betting that cloud security will be as essential to our digital future as semiconductors are to AI. The premium price for five-year-old Wiz reflects both defensive positioning against cloud rivals and offensive preparation for an AI-dominated landscape.
This valuation — roughly 32 times Wiz's projected 2025 revenue — may seem reminiscent of the dot-com bubble. But unlike that era's paper tigers, Wiz boasts exponential growth ($500M ARR last year, targeting $1B in 2025) and solves a genuine problem that grows more acute daily.
Key Insights:
Multi-cloud complexity creates opportunity: As companies distribute workloads across AWS, Azure and Google Cloud, security vulnerabilities multiply in the gaps between systems — precisely where Wiz excels at detection and remediation.
Google Cloud plays catch-up: Despite strong technical capabilities, Google trails Microsoft (MSFT) and Amazon (AMZN) in enterprise cloud market share. Adding Wiz's security capabilities addresses a critical competitive weakness.
Executive talent matters: Wiz's leadership team includes cybersecurity veterans with track records at Microsoft and Zscaler (ZS), suggesting operational execution that justifies the premium.
Market Pulse:
"In an era when digital security breaches can vaporize billions in market value overnight, paying up for best-in-class protection increasingly looks less like an expense and more like insurance," notes veteran cloud analyst Gil Luria.
Bull’s Take:
While the price tag might induce sticker shock, patient investors should recognize this as Google strengthening its position for the next decade of cloud and AI growth. Sometimes the most prudent investment is the one that seems expensive today but prevents catastrophic losses tomorrow.
Headlines
Oracle in ‘Advanced’ Talks to Take Over TikTok (link)
Tesla stock falls again as Chinese rivals BYD, Xiaomi, and XPeng announce new updates (link)
Adobe Launches AI Agents For Its Marketing Platform (link)
Dell CEO explains why he thinks the PC refresh cycle is starting (link)
Nvidia, GM announce deal for AI, factories and next-gen vehicles (link)
Taco Bell parent Yum Brands partners with Nvidia to speed up its use of AI (link)
CRYPTO
Fear & Greed
Headlines
DAILY SHARE
On the Socials
*Hat-tip to HumansNoContext