Big Tech looks to buy reports of innovation-driven entrants

Entrepreneurs News

This story originally appeared on Zacks

The recent rate-driven valuation pressure among next-generation technology has created some ripe acquisition opportunities for cash-rich mega-cap technology. After a rapidly weakening investor sentiment, Peloton PTON is the latest acquisition target, with poor management decisions dragging its market value -80% below the highs it reached a year earlier.

– Zacks

Now, below $ 10 billion in market value, Peloton is getting views from Amazon AMZN and its growth-hungry new CEO, Andy Jassy, ​​looking for its broad-based subscription offering in any way necessary. Nike NKE has also joined Amazon on the list of potential PTON providers to accelerate this shoemaker’s digital / subscription business evolution.

This leading exercise equipment / software company rose its shares by more than 20% in Monday’s session, but PTON still sits 5x below its $ 50 billion over-euphoric market capitalization last January.

Microsoft MSFT kicked off 2022’s M&A action with a $ 70 billion bid for Activision Blizzard ATVI. ATVI was down nearly -50% from its 52-week high in the wake of allegations of uncontrolled workplace misconduct, but its underlying growth prospects remained intact.

Profitable technology giant’s recent cash infusion of the digital acceleration of the pandemic has them looking for deals, and they’re finding themselves in high-growing unicorns where management is failing.

Global transactions reached a record $ 5.9 trillion in 2021, and with more than 60% of U.S. CEOs seemingly pursuing an acquisition (according to EY), 2022 M&A activity is probably just warming up.

Just Released: Zacks Top 10 Shares for 2022

In addition to the investment ideas discussed above, would you like to know about our top 10 buy-and-hold tickers for the entire 2022?

Last year’s 2021 Zacks Top 10 Shares portfolio returned gains as high as + 147.7%. Now a brand new portfolio has been hand-picked from more than 4,000 companies covered by the Zacks rank. Do not miss your chance to get involved in these long-term purchases

Get access to Zacks Top 10 shares for 2022 today >>

Want the latest recommendations from Zacks Investment Research? Today you can download 7 best stocks for the next 30 days. Click to get this free report, Inc. (AMZN): Free Inventory Analysis Report

Microsoft Corporation (MSFT): Free Inventory Analysis Report

Activision Blizzard, Inc (ATVI): Free Stock Analysis Report

NIKE, Inc. (NKE): Free Inventory Analysis Report

Peloton Interactive, Inc. (PTON): Free Inventory Analysis Report

Click here to read this article on

Zacks Investment Research

Source link

Leave a Reply

Your email address will not be published.