Altera Soars on Buyout, GoPro Spikes on New Camera

NEW YORK (TheStreet) -- Altera (ALTR) shot higher Monday after Intel (INTC) announced its largest acquisition ever in snapping up its rival chipmaker for $16.7 billion. GoPro (GPRO) spiked after it debuted a new entry-level video camera. Microsoft (MSFT) climbed after issuing a launch date for its next operating system Windows 10. Cisco Systems (CSCO) fell as investors digested its announcement that its executive suite is changing.

Altera spiked 5.8% to end the day at $51.68. Intel, meanwhile, dropped 1.6% to close at $33.90, on a day when the broader markets advanced.

Under the deal, Intel is purchasing Altera for $54 a share -- a 10.5% premium over its close on Friday, according to a Reuters report. That translates into nine times Altera's forward looking revenue, which, according to a Stifel, Nicolaus & Co. analyst quoted in Reuters, is a very high price to pay. The analyst told Reuters, "The last one I remember that was close was Broadcom (BRCM) buying NetLogic at eight times forward revenue and that didn't turn out very well for Broadcom."

The Altera purchase aims to help the combined company develop chips for the data center market, which is booming as customers demand more storage for information, images and video. The companies also noted it will help them increase its presence in the growing market that is deemed the Internet of Things, in which various devices are all connected and work together through the Internet.


GoPro soared 5.5% to end session at $58.52.

The high-end video camera maker spiked after announcing the availability of a new low-end camera that sells for $299.99 -- $100 less than its Hero4Silver model. The new camera is called the Hero+LCD camera.

"HERO+LCD illustrates that even as we push the limits of life capture with bleeding-edge devices like the HERO4 Black, we're also focused on delivering accessible, high-quality capture solutions to anyone wanting to GoPro," Nick Woodman, GoPro CEO, said in a statement. The Hero+LCD is expected to be available in the U.S. beginning Sunday.

GoPro offers a lineup that ranges from $129.99 for the Hero camera to as high as $499.99 for its top of the line Hero 4 Black, according to a report in Investor's Business Daily.


Microsoft edged 0.79% higher to close at $47.23.

The software giant got a lift after setting a date for the release of its Windows 10, which marks its next major update to its operating system. Microsoft expects to release Windows 10 on July 29

Microsoft's new operating system is its first large update in three years, according to a report in Yahoo! Finance. Some of the features of the new operating system are enhanced security, the ability to squeeze out longer battery life on devices and running apps faster.


Cisco Systems fell 0.44% to end the session at $29.18.

The company's move to streamline its upper management team and eliminate the role of its co-presidents apparently did little to give investors confidence in the stock. As part of the reorganization, Gary Moore, Cisco co-president and chief operating officer, along with Rob Lloyd, co-president of development and sales, will be leaving the company on July 25, according to an Associated Press report

Along with this change, Cisco is reportedly preparing to say goodbye to Chief Technology Officer Padmasree Warrior, according to a Business Insider report. Although Warrior does not yet have a departure date, it may be announced when Cisco's soon to seated CEO Chuck Robbins announces his new management team in the next two weeks, according to the report.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

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