Today, Box (NYSE:BOX) is seeing some pretty impressive investor interest. Shares of BOX stock were up as much as 8% this morning as investors consider the potential of this company being acquired.
Let’s dive into what the speculation is all about, and why investors are so bullish on this stock.
Sources: BOX Stock Could Be an Acquisition Target
It appears hedge fund investor Starboard Value has indicated the company should pursue this avenue to create shareholder value. A Reuters exclusive today highlighted that anonymous sources indicated Box has already been in discussions with multiple buyers.
In any normal environment, this news would be cause for a sharp pop. However, given the speculative nature of the market today, these rumors could result in some pretty impressive volatility on the horizon for investors.
Indeed, today’s move appears to improve the outlook for this cloud storage and backup company. Investors appear to be underwhelmed with the recent results of BOX stock. It appears many early investors thought much more in the way of growth was possible at the time of the IPO five years ago. Since then, shares have basically traded sideways.
The surge in demand for cloud storage and backup solutions during the pandemic has resulted in some pretty decent year-over-year returns. However, unlike many of its peers, Box stock has lagged due to lower-cost competitors and a surge in supply. Thus, it appears an acquisition could certainly provide excellent shareholder value right now.
One potential suitor for BOX stock could be Salesforce (NYSE:CRM). The company has identified Box as a potential acquisition target in the past. Given the fact other suitors may be present, a bidding war could drive continued speculative buying in this cloud name.
Whether or not a deal materializes is a whole other discussion. Taking profits and selling the news never hurt investors. However, over the very near term, there may be some interesting upside to capitalize on.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.
