Shares of Confluent (CFLT) surged nearly 30% after IBM (IBM) announced its acquisition of the data streaming platform for $11 billion in cash. IBM’s proposal values each CFLT share at a premium of $31. This move will allow IBM to leverage real-time data streaming and processing for AI models. Despite the jump, CFLT stock is still down over 20% from its year-to-date high. While the deal is positive for Confluent, the stock may not offer further upside for new investors. The transaction is expected to close in the first half of 2026, making it unlikely for CFLT stock to trade above $31 without a competing bidder. IBM’s acquisition of Confluent was not undervalued, as the mean target price for CFLT shares was around $28. This means the current price reflects market expectations.

Read more at Barchart: Is It Too Late to Chase the IBM-Driven Rally in Confluent Stock?