Why SolarWinds (SWI) Went Up On Friday?
We recently published a list of . In this article, we are going to take a look at where SolarWinds Corporation (NYSE:SWI) stands against other firms that posted double-digit gains on Friday.
The stock market fell into the red territory on Friday, with all major indices recording losses over renewed fears of growing trade tensions coupled with expectations of a higher inflation rate in the US.
The Dow Jones lost 0.99 percent, the S&P 500 declined 0.95 percent, while the tech-heavy Nasdaq dived by 1.36 percent.
Despite the overall pessimistic sentiment, 10 companies managed to defy losses, posting double-digit gains in their valuations amid a flurry of impressive earnings performance.
To come up with Friday's top winners, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.
A systems administrator sitting at their desk surrounded by computer monitors, overseeing a complex infrastructure.
SolarWinds Corporation (NYSE:SWI) surged by 21.82 percent on Friday to end at $18.31 apiece as investors gobbled up shares to secure profits following the company's planned delisting from the stock exchange.
In a statement, SolarWinds (NYSE:SWI) said it reached an agreement with Turn/River Capital to be acquired by the latter for $4.4 billion. The tender offer was priced at $18.5 apiece, representing a 35-percent premium over its average closing price in the past 90 days.
SolarWinds (NYSE:SWI) said the acquisition was expected to be completed by the second quarter of 2025.
Its majority shareholders, Thoma Bravo and Silver Lake, which control 65 percent of SWI, have already given their written consent for the acquisition.
'We now look forward to partnering with Turn/River to deliver operational resilience solutions for our customers on our SolarWinds Platform, leveraging our premier observability, monitoring, and service desk solutions,' said SWI President and CEO Sudhakar Ramakrishna.
Overall, SWI ranks 3rd on our list of firms that posted double-digit gains on Friday. While we acknowledge the potential of SWI as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SWI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
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