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NYSE Euronext Shares Plunged: What You Need to Know

By Travis Hoium - Updated Apr 6, 2017 at 9:49PM

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Is this meaningful? Or just another movement?

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of stock exchange company NYSE Euronext (NYSE: NYX) fell 11% today after the company lost two potential bidders for its shares.

So what: Nasdaq OMX (Nasdaq: NDAQ) and IntercontinentalExchange (NYSE: ICE) announced they were withdrawing a bid for the company after discussions with antitrust regulators. That leaves Deutsche Boerse as the company that will likely acquire NYSE Euronext after a long fight with other exchanges for the company.

Now what: Now the deal with Deutsche Boerse goes to a shareholder vote on July 7. Management preferred this deal all along, touting the growth opportunities for the German and U.S. exchanges. I don't see a reason to buy shares today given the loss of a higher bid, but this might be better for shareholders in the long run.

Interested in more info on NYSE Euronext? Add it to your watchlist.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Stocks Mentioned

NYSE Holdings LLC Stock Quote
NYSE Holdings LLC
Nasdaq, Inc. Stock Quote
Nasdaq, Inc.
$204.61 (3.35%) $6.63
Intercontinental Exchange, Inc. Stock Quote
Intercontinental Exchange, Inc.
$134.10 (2.48%) $3.24

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