HashiCorp ($HCP) Stock Up 26% on Report of IBM Buyout

Shares of HashiCorp ( HCP ), a cloud software maker, surged by up to 26% following media reports that IBM was in discussions to acquire the company. HashiCorp's software aids developers in setting up and managing infrastructure in public clouds operated by companies like Amazon and Microsoft. The software also provides organizations with security credential management services for which they pay HashiCorp.

According to sources who wished to remain unnamed, a potential deal could be reached within the next few days. This report has been neither confirmed nor denied by either HashiCorp ( HCP ) or IBM representatives.

While HashiCorp ( HCP ) went public on Nasdaq in 2021, the company was founded in 2012 and has grown considerably since. In the fiscal year ending January 31st, the company earned $583 million in revenue, alongside a net loss of almost $191 million. The annual report shows that HashiCorp's revenue increased by nearly 23% during that period, compared to IBM's 2% in 2023. IBM executives cited a difficult economic climate during a conference call with analysts in January. IBM will report its earnings on Wednesday.

Cisco held $9 million worth of HashiCorp ( HCP ) shares at the end of March, according to regulatory filings. In 2019, Cisco reportedly held early discussions about acquiring HashiCorp ( HCP ).

Technical Outlook
HashiCorp ( HCP ) share IS up 26% due to the buyout news trading above the 200, 100, and 50-day Moving Average (MA) respectively. The stock has a Relative Strength Index (RSI) of 70.24 indicating bullish momentum.