Why Qualcomm, MercadoLibre, and Arista Networks Jumped Today

The stock market finished the week strong on Friday, with gains in the major benchmark indexes. The technology industry generally led the way following a strong earnings report from the world's most valuable company. Investors were also pleased with the reception that the latest Republicans tax reform proposal has gotten, and while opposition has arisen as expected, proponents are optimistic that some form of tax cut could get through Congress.

Some stocks posted extremely large gains Friday, and Qualcomm (NASDAQ: QCOM), MercadoLibre (NASDAQ: MELI), with Arista Networks (NYSE: ANET) among the best performers. Below, we'll look more closely at what propelled these companies' stocks higher.

Qualcomm soared 12% after reports surfaced that the chipmaker could be the target of an acquisition bid. Bloomberg reported that Broadcom (NASDAQ: AVGO) was considering making an offer to buy out Qualcomm, with possible terms involving a combination of cash and stock worth about $70 per share. That would be a more than 25% premium on the price Qualcomm traded at when the day began, and even after today's jump, a bid at that level would offer a double-digit-percentage return. Qualcomm's share price fell recently on fears that its modems might lose their spot in future iPhone models, which could give an acquirer a shot at picking up the tech giant at a bargain price.

Source: Fool.com