Anticipation of multiple interest rate cuts in 2024 created an easing in financial conditions. With it comes deal-making opportunities. A WSJ report that Hewlett Packard Enterprise (HPE) would buy Juniper Networks (JNPR) sent HPE stock lower and JNPR up.
The HPE-JNPR combination is not a good fit. Juniper shareholders benefit immensely, however, thanks to the rich premium. Hewlett Packard Enterprise may fare better buying Nutanix (NTNX) instead for its software solutions. Still, HPE previously demonstrated its merger and acquisition skills. Its Aruba acquisition is a major contributor to revenue. Synergies between the two firms would cut costs, increasing profitability.
Speculators are betting on deal-making activities – again – in the media sector. Bets are in on Paramount (PARA) receiving rich offers. Warner Bros. Discovery (WBD) is often cited as the interested buy. Investors seeking media firm exposure should watch Sony (SONY), Comcast (CMCSA), Netflix (NFLX), and Amazon (AMZN).
In the cannabis sector, prospects remain very poor. Canopy Growth (CGC) and Cronos (CRON) will likely fall today. Buying volume is on the rise after Tilray (TLRY) posted results on Jan. 9. Its revenue grew by 34.6% Y/Y to $194 million, thanks to the beverage alcohol unit reporting a 117% increase, or $47 million, in revenue in Q2.
For the most aggressive traders, watch Bitcoin (BTC), which is hovering at $46,800. For months, the anticipation of the SEC approving a spot Bitcoin BTC drove the crypto price to fresh yearly highs.
