FireEye Inc (NASDAQ: FEYE) is having an interesting day in the market today. While the stock has spent the majority of the first hour of the trading session in the green, the gains have been relatively minimal. That is, until minutes ago when the stock started to make a run for the top. The gains are the result of a rumor that’s surfacing on message boards around the web at the moment. Before we get into the details, we’d like to extend a quick thank you to our partners at Trade Ideas for being the first to alert us to the movement. At the moment (10:27), FEYE is trading at $16.86 per share after a gain of $0.23 per share or 1.38% thus far today.
FEYE Gains On Takeover Chatter
As mentioned above, FireEye is having an interesting day in the market today. While the stock has remained in the green for most of the first hour of the trading session, gains were relatively minimal until minutes ago when the stock started to make a run for the top. Recently, a rumor started to break on message boards that FEYE will be taken over. However, the rumor is overwhelmingly vague. At the moment, there is no insinuation of who may be interested in taking the company over nor at what price. Also, when working to track down the rumor, we can’t seem to find any reliable source.
With that said, it’s important that investors keep in mind that rumors happen all the time in the market. In fact, takeover rumors are one of the most common forms of stock market manipulation today. The reality is that market rumors work a lot like any other rumor. They are not based in fact. Instead, they are started by someone in an attempt to get a rise out of their audience. In this particular case, given the fat that the rumor is overwhelmingly vague and it’s nearly impossible to track the source, we don’t believe that there is any validity to the rumor.
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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 FEYE. In particular, we’re interested in following the story surrounding the takeover rumors. While we don’t believe that a takeover is going to take place, anything can happen in the market. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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