Why Lumentum Holdings Stock Popped Today
Portfolio Pulse from Ryan Gustafson
Lumentum Holdings Inc. (NASDAQ:LITE) has announced an agreement to acquire Cloud Light for $750 million. The company expects the deal to be immediately accretive to earnings per share and more than double its cloud intra-data center infrastructure revenue in the 12-month period after the close of the transaction. Shares of LITE were up 11.4% at $40.20 at the time of publication.
October 30, 2023 | 7:43 pm
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Lumentum's acquisition of Cloud Light is expected to be immediately accretive to earnings per share and double its cloud intra-data center infrastructure revenue. This news has already positively impacted the stock price.
The acquisition of Cloud Light is a strategic move for Lumentum to expand its opportunities in the cloud data center and networking infrastructure space. This is expected to significantly boost its earnings and revenue, which is a positive signal for investors, leading to the increase in stock price.
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