Google wants to keep your nest safe: It’s investing $450m in the home-security company ADT.
The idea? Turn Google’s Nest devices into the “cornerstone” of ADT’s smart-home lineup.
If the market’s reaction is any barometer, the deal is very good news for ADT and a baaaad sign for the competition.
Here’s a 5-day view of ADT’s stock — it was up 56+% (closing at $13.48) by the end of Monday’s trading day:
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And here’s a 5-day look at Alarm.com Holdings Inc. — another home-security company. Its stock tanked by as much as 20% — the most in intraday trading in nearly 5 years, according to Bloomberg. It ended the day down 16+% (closing at $58.28).
Very bad day aside, don’t sound the alarm for Alarm.com just yet: Its share price is still up ~34% since the start of the year.