Some companies wield such significant influence in the stock market that their acquisitions and industry maneuvers promptly translate into positive market reactions. A recent illustration of this phenomenon is Nvidia’s (NASDAQ: NVDA) investment in Nano-X Imaging, which triggered a surge of 50% in its stock price at one juncture.
Now Walmart (NYSE: WMT) has just confirmed the acquisition of Vizio Holding Corp (NYSE: VZIO), which made its stock surge by more than 15% in the pre-market trading.
VIZIO stock was acquired at $11.50 per share in cash, resulting in a fully diluted equity value of approximately $2.3 billion.
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Why did Walmart acquire Vizio?
Since its establishment in 2002, VZIO has expanded its device ecosystem, and its Smart TV operating system, SmartCast, has garnered over 18 million active accounts, experiencing a growth of approximately 400% since 2018.
The acquisition of VIZIO and its SmartCast Operating System (OS) would enable Walmart to establish novel avenues for connecting with and serving its customers, mainly through innovative television and in-home entertainment and media experiences.
Moreover, it would open up new opportunities for advertisers to engage with customers, providing brands with distinct and compelling avenues to connect on a large scale and enhance the effectiveness of their advertising expenditure through Walmart.
This integration is expected to drive further growth in Walmart’s media business in the United States, specifically Walmart Connect, by merging VIZIO’s advertising solutions business with Walmart’s extensive reach and capabilities. These advantages would be bolstered by the expansion of connected TV platforms and Walmart’s prominent sales of TV panels in the industry.
VZIO stock forecast
Since its last closure, VZIO shares have increased by 0.11%, reaching $9.53. Over the past five trading sessions, it has seen a further upside of 25.56%.
Over the past month, VZIO’s trading range has been between $6.93 and $11.28, indicating a significant spread. Vizio stock price is trading around the midpoint of this range, suggesting potential resistance levels above.
A significant support level for this stock has been identified at $6.24, while a resistance level is established at $11.01.
A breakout is anticipated shortly due to the stock price’s proximity to the resistance zone. However, the long-term impact of this acquisition on the stock’s performance remains uncertain and awaits observation.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
