Ambarella Inc (NASDAQ: AMBA) is having an incredibly interesting day in the market today. Early on in the session, the stock was bouncing between the red and the green with no significant gains or losses to speak of. However, minutes ago, the stock started to spike as rumors broke. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:39), AMBA is trading at $54.54 per share after a gain of $0.83 per share (1.55%) thus far today.
AMBA Spikes On Takeover Rumors
As mentioned above, Ambarella is having a strong time in the market at the moment as the stock spikes on rumors. The rumor is that the company will soon be taken over. According to the rumor mill, the takeover is going to happen at a price of $73 per share. However, there is no indication of who may be interested in purchasing the company. In fact, outside of the fact that the rumor suggests a target price on the takeover, the rumor itself is incredibly vague.
As is normally the case when we see rumors like this, it’s important that we remind investors that rumors are nothing new in the market. In fact, when it comes to stock market manipulation, rumors just so happen to be the most common source. Generally, rumors in the market work like any other rumor. They are not based in fact. Instead, they are made up in an attempt to get a rise out of the audience. With that said, if you plan to trade based on the AMBA takeover rumors, please be sure to do so with caution!
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on AMBA. In particular, we’re interested in following the ongoing rumors of a takeover. While we don’t believe these rumors to be valid, anything can happen in the market. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Update: Intel Corp is rumored to be the buyer!
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