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Extreme Networks (EXTR) Could Unlock Huge Upside on Ruckus Networks Acqisition

Extreme Networks, Inc. (NASDAQ:EXTR) is one of the 10 Cheap Stocks with Huge Upside Potential. On January 13, reports emerged that the company is considering a possible acquisition of Ruckus Networks from CommScope Holding Company, according to people familiar with the discussions. Extreme Networks has been evaluating a potential cash-and-stock transaction that could value the Wi-Fi and networking equipment provider at more than $1 billion. However, a final decision has not yet been reached. The company could ultimately decide not to move forward with the deal. Upon request, representatives from both Extreme Networks and CommScope Holding declined to comment on the matter.

A transaction worth more than $1 billion would be significant for the stock, which closed trading on January 13 with a market value of about $2.1 billion. In the meantime, CommScope shares surged 2.9% to $19.04, valuing the company at roughly $4.2 billion. If completed, the deal would significantly improve the company’s portfolio of products and services. It will support large customers such as financial services firms and government agencies in managing networks.

CommScope acquired Ruckus Networks in 2019 as part of its acquisition of Arris International. The firm has recently been selling assets to reduce its debt, including a $10.5 billion sale of its broadband and cable equipment unit to Amphenol.

Extreme Networks, Inc. (NASDAQ:EXTR) operates as a developer, marketer, and seller of network infrastructure equipment and related software. It provides ExtremeCloud IQ, ExtremeCloud IQ-Site Engine, and ExtremeCloud IQ Essentials. The company serves mid-market and enterprise customers, as well as service providers across several industries.

While we acknowledge the risk and potential of EXTR as an investment, our conviction lies in the belief that some 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 EXTR and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT:  Cathie Wood’s Stock Portfolio: Top 10 Stocks to Buy and 30 Most Fantastic Stocks Every Investor Should Pay Attention To.

Disclosure: None. This article is originally published at Insider Monkey.

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Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

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  • 140 Metas
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  • 65 Microsofts
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  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
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