MOBILEYE - A Merger & Acquisitions target! Downside limitedNASDAQ:MBLY - M&A Target 🎯🚘
Here's my thoughts of what I believe to be limited downside on Mobileye with my thesis that they could be a prime M&A target for a slew of Mega-Cap companies with the new administration pegged to be more lax in this area of business. More details in this post. 👇
I personally love Mobileye - NASDAQ:MBLY as a fundamentally undervalued company with great tech. I believe its a great investment with great technicals as well.
My thesis is that the downside is limited at this point due to this M&A realm we are about to step into here shortly.
Jensen just clarified what I had already perceived to be true which is the AV and Robotaxi market is a multi-trillion TAM over the next decade. These words alone increase any M&A price targets of any company in this space to include a robust Top 3 player such as $MBLY.
They currently sit at a 13.75B Mkt Cap after the massive 25% flush the last two days due to no new news. Not actually based off of fundamentals or the technology.
I would put a MINIMUM M&A target on this name of 15B and Maximum of 30B IMO.
A lot of big tech getting into this space and are way behind the Top 3 players in this realm of Mobileye/ NASDAQ:TSLA / NASDAQ:GOOGL (Waymo). It's obvious who would get gobbled up by a deal that is too good to resist which I believe personally is north of 20B as they are already on a solid path forward with headwinds turning into tailwinds (interest rates/ inflation/ china recovery/ auto-market recovery)
My personal theory of the companies most likely to take their shot are as follows in order:
NASDAQ:QCOM - Big chip player who is partnered with majority of legacy car brands. (Did a write-up in the past when they were thinking of acquiring/ merging with Intel in which own 80% share in Mobileye)
NASDAQ:NVDA - Announced there ambitions in this sector and have already been working within it. They've recently lost Hyundai though which tells me they aren't so close to having solid breakthroughs. But I believe they have the money and will to throw at M&A and take short-cut.
NASDAQ:GOOGL - Their robotaxis use very expensive lidars and I could see them make this purchase to get Mobileyes much cheaper technology that can be fitted to cars a lot simpler and with a cheaper price tag.
Others that I'm less confident on but have the money and could become a player: NASDAQ:META $APPL NASDAQ:AMZN
Great post Za! I hope I was able to add something for any Mobileye investors/ traders. Have a great market day off friend.
Not financial advice.
