Two Mergers and Acquisitions that Could Shape the Market
The market is witnessing two acquisitions that shake their respective sectors. It’s worth checking them out.
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In online stock trading, it is always important to watch out for mergers and acquisitions, since they can transform their respective stock performances and the overall market behavior. Here are two major acquisitions that are set to transform their respective sectors. Facebook and FacioMetrics Let’s start with the news about Facebook ($FB) buying the FacioMetrics startup. There is hardly any doubt as to what motivated Facebook to grab FacioMetrics. The latter is a creator of advanced machine learning and computer vision algorithms aiding facial image analysis. People using mobile apps are already familiar with the technology that runs in various apps. Facebook wants to tap into that and incorporate such video and photo special effects in its user experience. Facebook is looking to take a leaf from the success story of its social networking rival Snapchat with its interactive chatting technology. FacioMetrics’ facial image technology could ensure it gets to present strong competition to Snapchat and other social media platforms, particularly among teenagers and young adults. Instagram has admittedly copied Snapchat for its Instagram Stories. Facebook’s move appears to be a good one, and it could raise the game for other social networks too. And let’s not forget, SnapChat has announced its planned IPO in 2017, and $FB could be setting the scene for tougher competition by that time. For its part, FacioMetrics believes its acquisition will give it more opportunities for research. Tesla and SolarCity to Finally Merge Moving on to Elon Musk’s interests, SolarCity ($SCTY) and Tesla Motors ($TSLA) shareholders have finally approved the former’s takeover by the latter. This was something Tesla CEO and co-founder Elon Musk was pushing for. SolarCity is run by Musk’s family, and Tesla was getting into innovative solar tiles for elegant solar roofing in addition to its electric cars. Solar roofing and housing have been the realm of SolarCity, and Musk wished to avoid any direct competition between $TSLA and $SCTY. Now that both the companies would come under one roof, the potential for growth is more. It bodes well for the renewable energy market since the acquisition gives Tesla greater opportunities to innovate. It will make Tesla the first fully integrated sustainable energy company involving electric, solar and other forms of renewable and sustainable energy. And these technologies could significantly influence the way we live and do stuff. The only question remaining was whether the business model of SolarCity would add to Tesla’s risk. But $TSLA is only paying around $2 billion worth of its stock for the
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acquisition and this ensures a good deal of risk mitigation. $SCTY has fallen around 60%from its trading value three years back. For successful online stock trading, it’s worth keeping your eyes and ears open for more such mergers and acquisitions that could turn out to be groundbreaking.
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+1.954.944.3885