Few catalysts can move a stock in a single trading day as much as news that its become a potential takeover target, and buyout news is often preceded by buyout rumors. Fitbit (FIT), Yahoo! (YHOO) andSolarCity (SCTY) have all been on the move this month on takeover talk. Here’s a closer look at the chatter surrounding each name.
Fitbit (FIT)
FIT’s stock is down 64% in the last six months on fears that competition is going to eventually overwhelm the wearable device maker. However, the stock is already up 18% so far in March. One reason for the big move is a market rumorthat Nike (NKE) could be interested in a buyout. There has yet to be any official news on the subject from either company. FIT’s fall from grace continues to lower the stock’s compelling 9.9 forward PE.
Back in January, Piper Jaffray analyst Gene Munster said that FIT stock owners can mark Apple (AAPL) off the list of potential buyers, claiming that AAPL has access to the “same technology” as Fitbit. Muster argued that AAPL would likely prefer to compete with FIT rather than join forces. If NKE sees FIT in the same light, the market may have been premature to speculate about a buyout.
Yahoo! (YHOO)
The buyout gossip surrounding YHOO is…
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