Motorola Mobility (NYSE:MMI) stock had a sudden 15% jump on Friday. We believe that the recent auction for Nortel’s patent portfolio could have been responsible for this run-up. Nortel had about 6,000 patents, and the consortium of Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Research in Motion (NASDAQ:RIMM), EMC (NYSE:EMC), Sony and Ericsson bought it for $4.5 billion. [1] Motorola Mobility has about 17,000 granted patents and approximately 7,500 pending patent applications, but has a market cap of only $6.9 billion. [2] So the market was looking at how much these patents could be worth based on the Nortel auction, which could have been inflated for competitive reasons.
We don’t differ much from market, and have a $24.60 price estimate for Motorola Mobility stock.
See our complete analysis for Motorola Mobility stock here
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