Capital One Financial (COF) is buying rival Discover Financial Services (DFS), The Wall Street Journal reported Monday.
X
An all-stock deal to merge the big credit-card players could be announced as soon as Tuesday, the Wall Street Journal said, citing sources. Earlier Monday, Bloomberg reported that Capital One was mulling a Discover deal.
Discover Financial has had a rocky period, with Roger Hochschild stepping down as CEO in August amid costly compliance errorts.
Discover stock has a market capitalization of $27.6 billion, but a deal would likely carry a premium. Capital One stock’s valuation is $52.3 billion.
COF stock has risen 4.7% in 2024, rebounding last week from the 10-week line, near 52-week highs. DFS stock has dipped 1.7% this year, including a 10.8% tumble on Jan. 18 after reporting tumbling Q4 earnings. Discover Financial, which has been finding support at a rising 50-day line since then, is close to a 113.42 buy point from a cup-with-handle base.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
YOU MIGHT ALSO LIKE:
Why This IBD Tool Simplifies The Search For Top Stocks
Best Growth Stocks To Buy And Watch
Two Artificial Intelligence Giants Skid On AI Fears. Take Note Investors.
U.S. Starts Ramping Up Chip Subsidies
Tech Futures Rise; Big Test Looms
Jessica Roberts is a seasoned business writer who deciphers the intricacies of the corporate world. With a focus on finance and entrepreneurship, she provides readers with valuable insights into market trends, startup innovations, and economic developments.
