These 2 Nasdaq Shares Have Investors Thanking 3 Days Earlier
The stock market has performed astoundingly lately, and the Nasdaq Composite (NASDAQINDEX: ^ IXIC) took full advantage, reaching all-time highs. The bullish run in the Nasdaq looked set to continue Monday morning, as Nasdaq futures were up 60 points to 16,635 at 8:15 am ET.
A few Nasdaq stocks helped lead the way to the upside, offering investors a cure for the Monday blues. Astra Space (NASDAQ: ASTR) and Vonage Fund (NASDAQ: VG) generated double-digit percentage gains that made their shareholders very happy, and trends that have driven their stocks up could have positive effects on the rest of the market as well.
Astra throws higher
Astra Space shares climbed 33% in pre-market Monday morning. The space services company celebrated an important moment in its history this weekend.
Astra launched its first commercial payload into orbit on Friday evening, honoring its commitment to the United States Space Force. The launch took place at the Astra Spaceport Facility in Kodiak, Alaska, part of the Pacific Spaceport Complex.
The payload of this launch was a test that the federal agency had put in place to give Astra the chance to successfully demonstrate its ability to put it into orbit. It took less than nine minutes for the payload to reach orbital speed.
In the future, Astra will now be able to increase its rocket production in order to be able to offer more launches. The expenses incurred could lead to a temporary increase in net losses, but the revenue opportunities it opens up should more than make up for the short-term red ink on Astra’s income statement.
Vonage establishes a connection
Elsewhere, shares of Vonage Holdings have jumped more than 25% in pre-market trading. The cloud communications specialist has received a takeover bid that will reward shareholders for their patience.
Ericsson (NASDAQ: ERIC) announced it would spend $ 6.2 billion to buy Vonage. The deal will pay Vonage shareholders $ 21 per share in cash, and the share’s pre-market gain reflected only a slight reduction from that $ 21 value.
For Ericsson, the agreement aims to strengthen its global presence in the wireless business communications space. With the Vonage communications platform having the potential to continue to grow strongly in the years to come, Ericsson believes the acquisition will increase its market share in an industry expected to be worth around $ 700 billion by 2030.
Vonage CEO Rory Read, meanwhile, sees the combination as making things possible that the two companies couldn’t do separately. According to Read, the evolution of the internet, cloud computing, mobility efforts and the emergence of powerful 5G wireless networking technology are combining to transform business operations. Joining forces with Ericsson will help both companies maximize their financial benefits from their vast technological resources and foster innovation.
Vonage’s core strategy has been to embed communication capabilities into applications, workflows and customer experiences that improve connections between businesses and their customers. As advancements in communications technology become available, this vision is increasingly becoming a reality. Now it looks like Ericsson will be the biggest beneficiary of Vonage’s efforts to take a leadership role in this high growth field.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.