VirnetX Holding Corporation (NYSEAMERICAN: VHC) is having an overwhelmingly strong start to the trading session in the pre-market hours as news is breaking that the company has won hundreds of millions of dollars in a patent infringement case against Apple, Inc. (NASDAQ: AAPL). Of course, this news is exciting investors, sending the stock screaming for the top. Today, we’ll talk about:
- The favorable patent infringement ruling;
- what we’re seeing from VHC as a result; and
- what we’ll be watching for ahead.
VHC Wins Patent Infringement Case Against AAPL
As mentioned above, VirnetX Holding is having an incredibly strong start to the trading session this morning after announcing that it has won a patent infringement case waged against AAPL. Late last night, a federal jury in Texas said that Apple would have to pay the security software company a total of $502.6 million as the result of patent infringement.
The ruling of patent infringement suggests that Apple’s FaceTime, VPN on Demand, and iMessage features all infringe on VirnetX Holding’s patents. In fact, according to various reports, there were 4 patents that the court ruled were infringed upon. As far as the judgment goes, damages in the ruling were based upon the sale of Apple devices, with about 400 million sales in the period discussed during the ruling.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news causes moves. In this particular case, the news proved to be overwhelmingly positive. After all, after Apple made its money selling the technology, it’s finally time for VirnetX to get their hands on their share, which just so happens to be a whopping $502.6 million! Considering this, it’s no surprise to see that investors are excited this morning. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (7:51), VHC is trading at $5.60 per share after a gain of 36.59% thus far today.
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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 VHC. In particular, we’ll be watching to see what the company does with the half a billion dollars in new funding that will come as a result of this ruling. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!