Nutanix Inc (NASDAQ: NTNX) is off to an overwhelmingly strong start to the day today, and for good reason. We’re starting to see quite a bit of takeover chatter surrounding the company. As you would imagine, this is leading to excitement surrounding the stock and causing gains. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:22), NTNX is trading at $16.99 per share after a gain of $0.72 per share (4.43%) thus far today.
NTNX Gains On Takeover Chatter
As mentioned above, Nutanix is having a strong day in the market today as takeover rumors start to break. The rumors ultimately stem from a suggestion. Recently, an article was published suggesting that the company would be a great takeover target for Cisco Systems (CSCO).
On that note, I have to agree. The reality is that Cisco Systems’ CEO Chuck Robbins has been on what many are calling a corporate shopping spree, and there’s no doubt that this shopping spree isn’t likely to end any time soon. In an attempt to grab the lion’s share in the Internet of Things industry, the company has been buying up various tech firms, and the truth is that NTNX is likely a great target.
Nonetheless, the rumors are not based in truth. At the end of the day, there’s no evidence that the two companies are in talks about a potential takeover. With that said, while NTNX would be a great topic, I wouldn’t get my hopes up that a takeover is actually going to happen any time soon.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on NTNX. In particular, we’re interested in following the potential of CSCO taking the company over. While this is not something that’s likely in the works at the moment, it could happen down the line. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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