Acacia Communications, Inc. (NASDAQ: ACIA)
Acacia Communications was off to a relatively normal start to the day today. However, minutes ago, the stock started to spike. After a bit of digging, we believe we’ve found the cause of the movement. Today, we’ll talk about what we’re seeing from the stock, why, and what we can expect to see from ACIA ahead.
What We’re Seeing From ACIA
As mentioned above, Acacia Communications was off to a relatively normal start in the market today. While the stock was in the green, there wasn’t much movement. However, minutes ago, that all changed as the stock started reaching for the stars. At the moment (9:59), ACIA is trading at $68.61 per share after a gain of $4.72 per share (7.51%) thus far today.
Why We’re Seeing The Gains
As usual, as soon as we noticed the gains on ACIA, the CNA Finance team started to dig to see what was causing the gains. In our investigation, we believe we’ve found the cause. All over social media, we’re seeing news that the company has won a new contract.
In fact, the chatter quotes William Blair as saying that Acacia Communications won a recent contract from Facebook. The contract will surround Facebook’s New White Box Voyager. There haven’t been any details with regard to the revenue this will generate for ACIA. Nonetheless, if this is true, it will likely be huge for the stock.
What We’ll Be Watching Ahead
Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from ACIA. While the story at the moment is a new contract, and that’s great, it only strengthens the argument for a coming acquisition. At this point, regardless of what happens with regard to an acquisition, Acacia Communications is in a strong position for growth. Ultimately, we’ll be watching the stock closely for any developments in either story surrounding ACIA.
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!
[Image Courtesy of Pixabay]