Acacia Communications, Inc. (NASDAQ:ACIA) was off to a relatively normal start to the day today. However, shortly after the bell the stock started to spike. After a bit of digging, we believe we’ve found the cause of the movement. Today, we’ll talk about what we’re seeing from the stock, why, and what we can expect to see from ACIA ahead.
What We’re Seeing From ACIA
As mentioned above, Acacia Communications, Inc. (NASDAQ:ACIA) was off to a relatively normal start in the market today. While the stock was in the green, there wasn’t much movement. However, that all changed around 9:50, as the stock started reaching for the stars. ACIA was trading at $68.61 per share at one point, a 7.51% gain for the day before settling into gains of 4.42%. Shares have gained another 1.13% in the after-hours session so far.
Why We’re Seeing The Gains
As usual, as soon as we noticed the gains on ACIA, the CNA Finance team started to dig to see what was causing the gains. In our investigation, we believe we’ve found the cause. All over social media, we’re seeing news that the company has won a new contract.
In fact, the chatter quotes William Blair in saying that Acacia Communications won a recent contract from Facebook Inc (NASDAQ:FB). The contract will surround Facebook’s New White Box Voyager. While there haven’t been any details with regard to the revenue this will generate for ACIA, regardless, if this is true, it will likely be huge for the stock.
What We’ll Be Watching Ahead
Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from ACIA. While the story at the moment is a new contract, and that’s great, it only strengthens the argument for a coming acquisition. At this point, regardless of what happens with regard to an acquisition, Acacia Communications, Inc. (NASDAQ:ACIA) is in a strong position of growth. Ultimately, we’ll be watching the stock closely for any developments in either story surrounding ACIA.
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Note: This article was written by Joshua Rodriguez, owner and founder of CNA Finance. If you would like to connect with Joshua, you can do so by emailing him at CNAFinanceHelp@gmail.com!