The Ratings Game: Software stocks jump as analysts bet ‘surge of cloud M&A’ could follow IBM/Red Hat

Software stocks soared Monday, after International Business Machines Corp. said it planned to acquire Red Hat Inc. in a deal with an enterprise value of roughly $34 billion, at a hefty premium.

Shares of Pivotal Software Inc. PVTL, +5.77% Splunk Inc. SPLK, +3.55% , and Workday Inc. WDAY, +1.74% were among the biggest gainers during Monday’s regular session, with Pivotal up nearly 6%, Splunk up 1.7% and Workday up about 4%. Shares of Nutanix Inc. NTNX, +3.12% , Dropbox Inc. DBX, +1.38% and Zscaler Inc. ZS, +1.24% also traded higher Monday.

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