Shares of Confluent, Inc. (NASDAQ:CFLT) are rising Wednesday following reports that the California-based data streaming company is considering a sale.
What To Know: Reuters reported that Confluent is exploring a sale after attracting acquisition interest. The company is reportedly working with an investment bank on the sale process, which is still in the early stages.
Confluent shares traded up above $25 following the news before giving back some of its gains. The stock was up nearly 12% at last check, according to Benzinga Pro.
The report indicates the process was started after several private equity firms and technology companies expressed interest in buying the company with shares down approximately 17% year-to-date. Companies like Confluent are starting to see increased demand due to the reliance of artificial intelligence on large amounts of data.
It’s worth noting that CFO Rohan Sivaram said a large AI-native customer reduced its usage of Confluent’s Cloud offering in favor of self-managing internal data platforms during the company’s latest earnings call.
Three people familiar with the matter reportedly cautioned that a deal is not guaranteed and Confluent could ultimately remain an independent company.
How To Buy CFLT Stock
By now you're likely curious about how to participate in the market for Confluent – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
CFLT Price Action: Shares of Confluent were up 10.44% at $22.90 at the time of publication on Wednesday, according to Benzinga Pro. The stock has traded within a 52-week range of $15.64 to $37.90.
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