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EIDX Soars on Billion-Dollar Merger

EIDX is hitting a new record high

Deputy Editor
Oct 5, 2020 at 9:29 AM
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Eidos Therapeutics Inc (NASDAQ:EIDX) is surging today, up 34.2% at $69.67 at last check, after announcing a merger with BridgeBio Pharma Inc (BBIO). More specifically, BridgeBio is set to buy Eidos Therapeutics in a cash-and-stock deal of about $2.8 billion. Shareholders of Eidos will have the option to either 1.85 shares of BBIO or to cash out at $73.26 per share up to $175 million -- a 41.1% premium to Friday's close. 

Ahead of the news, EIDX was down 9.5% year-to-date, and hanging out at familiar pressure at the $53-$54 region. Now, the equity is surpassing its record Dec. 16 high of $66.55.

Analysts were split on Eidos stock coming into today, with three in coverage at a "strong buy," three at a "hold," and one sporting a "strong sell." Meanwhile, the 12-month consensus price target of $59.38 is a 14.4% premium to Friday's close. 

Meanwhile, the 1.89 million shares sold short account for 15.1% of the stock's available float. In other words, it would take over 27 days to cover these bearish bets at EIDX's average pace of trading. 

 

AI has exploded ever since ChatGPT set the world on fire near the end of 2022.

Numerous companies with connections to artificial intelligence have seen their stocks soar.

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Its stock has skyrocketed 716% since ChatGPT’s debut. But here’s the thing …

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Yet, these strange investments could be the early ripples of a massive wave …Without them, ChatGPT could stop operating … Amazon, Google, Microsoft and more could see profits drop drastically.

In fact, Elon Musk says these investments are critical when it comes to solving the number one problem facing AI.

Now, Silicon Valley legend Michael Robinson has identified two companies that could play a significant role in the solution.

Their stocks just may be the key to AI 2.0.

Find out more about these two companies today.
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