Please ensure Javascript is enabled for purposes of website accessibility

Why Boingo Wireless Stock Soared Tuesday

By Daniel Sparks - Updated Mar 3, 2020 at 1:27PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Buyout speculation persists as management confirms "multiple inquires" for a strategic transaction.

What happened

Shares of wireless network specialist Boingo Wireless (WIFI) jumped sharply on Tuesday, rising as much as 26%. As of 12:22 p.m. EST today, the stock was up 19.2%.

The stock's gain follows commentary from management in the company's fourth-quarter earnings release that stated Boingo has received "multiple inquiries regarding a potential strategic transaction." 

A chart showing a stock price moving higher

Image source: Getty Images.

So what

Boingo said its board of directors is engaging with advisers to assess opportunities for strategic transactions. The company also said it is suspending its financial guidance in the meantime.

Commentary from management on inquiries regarding a strategic transaction comes as Boingo reported $64.1 million in fourth-quarter revenue, down 5.5% year over year. Furthermore, the tech company's loss per share was $0.12, worse than a profit of $0.01 in the year-ago period.

Analysts on average were expecting revenue of $69.7 million and a loss per share of $0.11. 

Now what

Investors should keep in mind that no deal for Boingo Wireless to be acquired has been announced. And there are no guarantees that a deal will be announced at all.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Boingo Wireless, Inc. Stock Quote
Boingo Wireless, Inc.
WIFI

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
316%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/05/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.