05.05.2020 Intel Daily Analysis

05.05.2020 Intel Daily Analysis

Intel today is trading at $57.99, it went up with $0.52 mainly because it bought Israel public transit app maker Moovit for $900 million to help it develop self-driving 'robotaxis' that should be introduced in early 2022. Moovit had enough cash to sustain itself for about a year but due to the economic impact of the pandemic it then decided to explore an outright sale to Intel. The deal took 40 days of negotiations through virtual meetings, and the decision to buy when the world economy is at standstill due to coronavirus stems from Mobileye's ability to more accurately predict when its technology will be ready thus according to Shashua.  Intel owned about 7% of Moovit before through a previous equity investment and paid about $840 million in cash to assume full ownership. However, for the meantime, Moovit will remain independent while its technology and the data it collects from more than 800 million users in 102 countrişes will be integrated into Intel’s Israel-based autonomous car unit Mobileye. According to Shashua, Intel has made significant investments already in Israel, including its $15.3 billion acquisition of Mobileye in 2017. In December it bought Israeli artificial intelligence firm Habana Labs for $2 billion. therefore because of this Intel shares are going up.