Today’s Research Reports on Stocks to Watch: Gigamon Inc. and JD.Com Inc.
Gigamon shares saw a modest gain on Tuesday after exploding in after-hours trading on Monday when it was revealed that Elliott Management Corp.’s private equity arm is interested in buying control of the company. Shares of JD.com also moved higher after the company snagged a 24-year veteran from Microsoft to head its cloud unit in China.
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Gigamon shares closed in the green yesterday up 2.76% on volume roughly twice as high as usual. Shares continued to rally on Tuesday after soaring around 12% in Monday after-hours trading when it was revealed that Elliott Management Corp.’s private equity arm has submitted a bid to acquire the networking software maker. It was roughly five months ago that the private equity wing of the hedge fund had purchased a big stake in the company and was pushing the company to pursue a sale. Elliott had bought a 15.3% stake in the company. Traders were on their tippy toes with this news as it could be the first time that Elliott’s private equity group may be able to lead the acquisition of a company that the activist side had put into play.
Access RDI’s Gigamon Inc. Research Report at:
JD.com shares closed up 2.97% on Tuesday with around 14 million shares traded. According to The Wall Street Journal, the China-based e-commerce company has recruited Samuel Shen, a top cloud computing executive in China from Microsoft. Shen is a 24-year veteran of Microsoft and was the former general manager of the company’s cloud unit in China. He will now be the president at JD’s cloud business. According to International Data Corp., China’s market for cloud infrastructure as a service rose 68% to $1.47 billion in 2016. Goldman Sachs has also raised its current target price for JD.com to $56. The firm wrote, “For China’s largest mobile/computers/IT retailer, we forecast further penetration in appliances (low vs. electronics), groceries (through omnichannel initiatives with Walmart, Daojia Dada), and apparel (cross-selling from JD Supermarket, investment in Farfetch).”
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Our Actionable Research on Gigamon Inc. (NYSE: GIMO) and JD.com, Inc. (NASDAQ: JD) can be downloaded free of charge at Research Driven Investing.
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