Why Cognizant Stock Jumped Today

Shares of Cognizant Technology Solutions (NASDAQ: CTSH) have jumped today, up by 7% as of 1:50 p.m. EDT, after the company announced yesterday that it would acquire digital marketing agency Lev. The broader market is also significantly higher on hopes that the U.S. government will pass a stimulus bill to mitigate the economic impacts of the COVID-19 pandemic.

Cognizant said that it would scoop up the smaller privately held digital marketing consultancy, which leverages salesforce.com Marketing Cloud to help companies improve marketing campaigns. The deal is expected to close in the first quarter, which ends in just a few days, and the tech company did not disclose any financial terms.

Image source: Cognizant Technology.

Source Fool.com