Acacia Communications, Inc. (NASDAQ: ACIA)
Acacia Communications was off to a relatively rough start in the market, making it into the red in early trading. However, minutes ago, the stock started to spike, and it is now well into the green. Today, we’ll talk about what we’re seeing from the stock, why, and what we can expect to see from ACIA ahead.
ACIA Is Gaining
As mentioned above, Acacia Communications wasn’t having the best start to the day today, trading in the red right off of the bat. However, the stock seems to be making somewhat of a recovery as a spike has pushed its value into the green. At the moment (9:44), ACIA is trading at $68.51 per share after a gain of $0.16 per share, or 0.23%.
Why We’re Seeing The Gains
As soon as we noticed the spike in value on ACIA, the CNA Finance team went digging to see exactly what was causing the movement. Through our investigation, we found no fundamental news from the company that would cause such movement. However, we did find something.
At the moment, there is quite a bit of chatter on social media surrounding Acacia Communications. According to the rumors, the company has won a new contract. However, the rumors don’t provide details about the contract or information on who it is with.
What We’ll Be Watching Ahead
First and foremost, it’s important to keep in mind that the movement on ACIA is being caused by a rumor. Often times, rumors don’t come to fruition. In fact, we have an example of that from last week when rumors went around that ACIA was going to be acquired. Nonetheless, we’ll be watching for further acquisition news as well as updates with regard to the current rumor, and, given the potential of these stories to move the needle, you should too!
Update: The chatter is now saying that the contract won was with Costco. Again, this is unconfirmed, and there has been no release from ACIA surrounding the news.
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[Image Courtesy of Pixabay]