Stock markets moved higher on Friday as comments from Fed Chair Jerome Powell briefly brought major market indexes down from their highs but didn't put a stop to the rally. Excitement about the prospects for technology and other innovative sectors of the economy remained pervasive heading into the weekend.
Moreover, there were signs of rising levels of fear about missing out on opportunities for quick profits, such as the 38% jump in shares of VinFast Auto (NASDAQ: VFS) as of 1 p.m. ET. VinFast just came public through a special purpose acquisition company (SPAC) merger in which more than 80% of shareholders redeemed their shares before the merger closed. The resulting thin float of less than 1% of the Vietnamese electric vehicle (EV) hopeful's outstanding shares lends itself to speculative fervor that makes extrapolation about the overall value of the company almost meaningless.
Yet there were some other stocks that actually had good reasons to see their shares rise. Ubiquiti (NYSE: UI) reported financial results that gave investors more optimism about the future, while BlackBerry (NYSE: BB) might be getting an interesting takeover proposal that has shareholders thinking about the best course of action going forward.
Ubiquiti keeps growing
Shares of Ubiquiti were up 16% early Friday afternoon. The provider of network technology reported fiscal fourth-quarter financial results for the period ended June 30, and investors were generally pleased with what they saw.
Ubiquiti's numbers showed solid signs of growth. Revenue climbed 11% year over year to $491 million and also picked up substantial ground from the most recent quarter. Gains in gross margin helped bolster Ubiquiti's bottom line, with adjusted net income rising 12% and earnings weighing in at $1.73 per share.
Ubiquiti is getting most of its growth from its enterprise-technology segment, which saw a 23% jump in segment sales for the full 2023 fiscal year. By contrast, Ubiquiti's service provider-technology segment is going through drops in revenue. Geographically, most of Ubiquiti's markets did reasonably well, with only some sluggishness in the Asia-Pacific region holding the company back.
Ubiquiti's stock has struggled in recent years, but investors hope that improving fundamentals will draw interest in the tech stock once again. As long as digital innovation remains in vogue, Ubiquiti should have a market for its networking products.
Does BlackBerry have a buyer?
Shares of BlackBerry jumped 15% Friday afternoon. The stock responded to reports that a private equity buyer might be interested in acquiring the groundbreaking technology company.
Veritas Capital has made an offer to purchase BlackBerry, according to reports from the news service Reuters. Details were scant, but that didn't stop shareholders from speculating as to whether a formal offer would appear and if so, what its terms would look like.
The days of BlackBerry's dominance in the smartphone market are long over, but many investors still believe that the company can play a key role in providing cybersecurity services, particularly in the automotive market. As cars and trucks get outfitted with an increasingly complex array of technology for both operations and entertainment, it becomes more important for automakers to have the kind of protection that BlackBerry has sought to offer.
Even if a buyout happens, though, the price is going to be well below BlackBerry stock's peak in the 2000s. Indeed, an acquisition from Veritas or another prospective buyer would mark a somewhat inauspicious end to BlackBerry's history as a publicly traded company.
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Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool recommends BlackBerry and Ubiquiti. The Motley Fool has a disclosure policy.
