Aug. 4 at 1:24 AM
I think one of two things happens with
$MBLY
Either Intel ultimately decides to take Mobileye private, or the market finally rerates the stock much higher.
My reasoning is simple: we're trading near all-time lows despite improving fundamentals, and the company has barely begun executing its authorized buyback. Through the end of Q2, only about
$24 million of the
$250 million authorization had been used.
If
$INTC truly believes Mobileye is significantly undervalued, these price levels would be an attractive opportunity to buy back the public float. On the other hand, if Mobileye remains public and executes on its autonomous driving vision, with a better aligned CEO, I believe the upside could be substantially greater.
Personally, I'd much rather see the second outcome. I'd rather own a company that appreciates 4-10x over the next year than receive a buyout at a modest premium.
Either way, I think today's valuation won't last forever. Time will tell.
