Looking for a quick and easy way to reduce volatility? Stop looking at your portfolio so much. In the world of tech stocks, this advice can go a long way towards helping you sleep well at night. Remember, it’s never over until the large-and-in-charge woman sings. For long-term investors with time horizons measured in decades, the “when to sell” decision is often resolved when an M&A event happens. That’s precisely what’s happening with one of the stocks we’re holding on – Splunk (SPLK).
Cisco and Splunk
Details matter, so always go to the horse’s mouth.
The above press release by Cisco (CSCO) talks about their plans to pay $157 a share for Splunk (a $28 billion purchase price), the company’s largest acquisition to date, and a deal that’s expected to “accelerate Cisco’s business transformation to more recurring revenue.” So, why do shares of Splunk currently trade in the $146 dollar range? That 7% discount reflects the market’s uncertainty that the deal will close “by the end of the third quarter of calendar year 2024, subject to regulatory approval and other c