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The Wiz acquisition will weigh on Alphabet's (GOOGL) cloud profits.
Alphabet's chief financial officer said so directly, placing the deal's near-term cost squarely on the cloud segment rather than spreading it across the company's consolidated results.
Cloud takes the margin hit The CFO was clear about where the pressure lands: cloud. The stated direction is down for cloud profitability, because of Wiz.
Acquisitions carry amortization of acquired intangible assets and integration charges that load into the absorbing segment before revenue from the new unit appears to offset them. Cloud will carry those charges.
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