Mellanox (MLNX) Rises on Upcoming Microsoft (MSFT), Google (GOOG) Deals
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Mellanox Technologies (Nasdaq: MLNX) has popped in Israeli trading over the last two days on news that it would begin selling equipment to Microsoft (Nasdaq: MSFT) and Google (Nasdaq: GOOG).
Rising 5.5 percent, Mellanox has risen about 11 percent over the last two sessions, its biggest move since March 11th, according to Bloomberg-compiled data.
Sales of equipment used to speed data transfer over the Internet to Google and Microsoft could provide Mellanox with about $200 million of extra revenue, according to Israel's Globes news source.
One analyst from Clal Finance thinks the Street isn't factoring in this revenue stream and it could have a "significant" impact to Mellanox's results in fourth-quarter 2013, moving into 2014.
Shares are indicated higher Wednesday after closing nearly 11 percent better on Tuesday's U.S. trading session.
Rising 5.5 percent, Mellanox has risen about 11 percent over the last two sessions, its biggest move since March 11th, according to Bloomberg-compiled data.
Sales of equipment used to speed data transfer over the Internet to Google and Microsoft could provide Mellanox with about $200 million of extra revenue, according to Israel's Globes news source.
One analyst from Clal Finance thinks the Street isn't factoring in this revenue stream and it could have a "significant" impact to Mellanox's results in fourth-quarter 2013, moving into 2014.
Shares are indicated higher Wednesday after closing nearly 11 percent better on Tuesday's U.S. trading session.
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