The Novavax Vax and Google’s Stalled Buyout of Fitbit 💉

by 5 Aug, 2020

The Novavax Vax and Google’s Stalled Buyout of Fitbit

Novavax is a biotech lab working on a coronacure. You need serious mental strength to own it. The stock got hammered 35% yesterday after releasing trial results, but then rocketed 50% just hours later in extended trading. The market didn’t like how executives would make mint even if the cure failed, but then success in monkeys started appearing through the cracks.

There’s a legion of investors out there who won’t touch vaccine stocks, as tradition biotech success stories are few and far between. However, drug-makers can catalyze their stock prices with all kinds of positive announcements during a pandemic. These are gambling vehicles!

There’s a clearer proposition in special situations, like the Google-Fitbit acquisition. The market is doubtful that European regulators will approve Google to buy fitness-tracking firm Fitbit on antitrust grounds, because Google’s market position is already so entrenched.

The European watchdog will complete an investigation on the 9th of December. Fitbit’s stock has languished below Google’s earlier bid price as fear sets in, but if the deal gets approved, that gap will close overnight. Right now, the upside is 9%, and the downside is about 50%.

It’s up to you to put weightings on the likelihood of each outcome. Fitbit ships less wearable tech devices than Apple, Xiaomi, and Samsung, so that implies there should be no problem, but imagine handing over your medical record and live health data to an ad firm like Google!

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

 

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