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Signify Health shoots up 40% on Amazon news

Signify Health shoots up 40% on Amazon news

Shares of Signify Health Inc (NYSE: SGFY) are up nearly 40% this morning on reports that Amazon.com Inc (NASDAQ: AMZN) wants to buy the home health services provider.

Amazon has the second-highest bid

Others bidding for the Dallas-headquartered firm include CVS Health and UnitedHealth Group.

The Bloomberg report did not reveal what Amazon is willing to pay for “SGFY” but said it had the second-highest bid, trailing closely behind over $30 a share that UnitedHealth is offering.

Final bids are expected around Labour Day. With Signify Health, Amazon will get to expand its footprint in healthcare. Last month, it also spent $3.90 billion to acquire 1LifeHealthcare.

Shares of the multinational tech company are down roughly 3.0% on Monday.

Jim Cramer reacts to the Amazon news

Signify Health “currently” has a market cap of $6.68 billion. The NYSE-listed firm that provides technology for in-home care is scheduled for a board meeting to discuss the bids today.

Reacting to the Amazon news on CNBC’s “Squawk on the Street”, Jim Cramer said:

This is Andy Jassy’s imprint. I think he recognises that there’s a way to be able to do a better health system than we have. What’s amazing to me is there’s Signify, not a juggernaut, and suddenly there’s four companies that want it.

In line with its practice of not commenting on speculation, Amazon refused to respond to the report on Monday. Last month, it reported its second consecutive quarterly loss.

Still, Wall Street recommends that you buy Amazon stock as it has upside to $170 on average.

The post Signify Health shoots up 40% on Amazon news appeared first on Invezz.