Mobileye NV (NYSE: MBLY)
Mobileye is having an incredible time in the pre-market trading hours, and for good reason. News of an acquisition has investors excited. Below, we'll talk about the acquisition, what we're seeing from the stock as a result, and what we'll be watching for with regard to MBLY ahead. So, let's get right to it...
INTC To Acquire MBLY
As mentioned above, Mobileye is having an incredibly strong start to the day in the pre-market hours. As soon as our partners at Trade Ideas informed us of the gains on the stock, the CNA Finance team started working to see why it was making a run for the top. It didn't take long to dig up the dirt. The gains are ultimately the result of an acquisition.
Early this morning, news of the acquisition broke. According to several reports, MBLY will soon be acquired. The buyer on the other side of the deal is massive. In fact, it's the household brand we all know as Intel. Ultimately, INTC will be purchasing the company for a total of $15.3 million.
How The Stock Is Reacting
As investors and traders, one of the first things that we learn is that the news moves the market. That's definitely the case today following the news of the acquisition. At the moment (8:34), MBLY is trading at $61.76 per share after a gain of $14.49 per share (30.65%) thus far today.
What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be watching Mobileye incredibly closely. In particular, we'll be watching the acquisition. While things look great now, the acquisition is subject to customary closing conditions. Nonetheless, we don't believe that there will be any hiccups in the plan for INTC to takeover MBLY. We'll continue to watch the story closely and bring it to you as it breaks!
UPDATE 9:31: As is no surprise, MBLY opens the day on incredibly strong gains. While few analysts seem to be weighing in on the acquisition, there is speculation by some experts on Twitter that the company may have sold out too soon. Nonetheless, investors seem to be happy. At the moment the stock is trading at $61.47 per share after a gain of $14.20 per share, or 30.04%. Considering the movement in pre-market and the acquisition price, we're expecting relatively flat movement from here.
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