- BlackBerry (BBRY +2.1%) is rallying on hopes the Microsoft/Nokia blockbuster will increase its chances of being acquired as it continues evaluating "strategic alternatives," and reportedly seeks out a "Google-like" white knight.
- Deal optimism is overshadowing a bearish note from Raymond James: the firm has cut estimates through 2015, and (backing up a recent WSJ column) says checks indicate sell-through has been weak.
- Meanwhile, several smaller networking/telecom equipment makers have joined Alcatel-Lucent and Ericsson (previous) in outperforming, as investors speculate Nokia will use some of its Microsoft cash to strengthen NSN via M&A. Infinera (INFN +5.6%), Ciena (CIEN +3.5%), DragonWave (DRWI +4.8%), and Ruckus (RKUS +2.6%) are among the winners.
- Craig-Hallum thinks Nokia is now likely to buy Ruckus, a leading player in carrier Wi-Fi and an existing NSN partner.
BlackBerry, networking stocks surge in response to Microsoft/Nokia
Sep 3 2013, 10:30 ET