Key Stats for Confluent Stock
- Price Change for Confluent stock: 29%
- $CFLT Share Price as of Dec. 8: $29.88
- 52-Week High: $38
- $CFLT Stock Price Target: $30
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What Happened?
Confluent (CFLT) stock jumped 29% on Monday after IBM announced it’s buying the data streaming company for $11 billion, or $31 per share in cash. The deal values Confluent at a significant premium to its Friday closing price of $23.14.
IBM CEO Arvind Krishna made it clear why the company wanted Confluent. “Data, and especially real-time data, is incredibly important to how an enterprise functions,” Krishna told CNBC. “Nobody can live with month-old data, or even week-old data, and Confluent has the most capable technology to unlock the real-time value of data.”
The acquisition fits squarely into IBM’s AI strategy. With global data expected to more than double by 2028 and AI agents becoming widespread in 2026, IBM sees Confluent as the missing piece for enterprises trying to power AI systems with real-time information.
Krishna emphasized that Confluent will help companies manage data flow to AI agents while maintaining proper security and controls.
At a recent RBC conference, Confluent CEO Jay Kreps explained why real-time data matters so much right now. “As software is doing more to run companies, being in sync with what’s happening in the company becomes more important,” Kreps said.
He pointed out that AI-powered customer support doesn’t work if the data is outdated. The AI needs to know what customers have done, what they’ve bought, and what’s happening in real time.
Confluent has built its business around Apache Kafka, an open-source platform that’s become the industry standard for streaming data across organizations.
The company has over 6,500 clients, including more than 40% of the Fortune 500, and partners with major tech companies like Anthropic, Amazon AWS, Google Cloud, Microsoft, and Snowflake.
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What the Market Is Telling Us About Confluent Stock
The strong reaction in CFLT stock shows investors are happy with the deal terms. IBM is paying a 34% premium to Friday’s close, and the all-cash offer removes uncertainty about the final price.
Shareholders holding 62% of Confluent’s voting power have already agreed to vote in favor of the transaction.
Wedbush analysts called it a “strong move” that makes sense for IBM’s hybrid cloud strategy. They see Confluent as a natural fit to help eliminate data silos and power AI applications.
The analysts maintained their overweight rating on IBM with a $325 price target, viewing the deal as part of a broader acquisition strategy that included HashiCorp for $6.4 billion last year and Apptio for $4.6 billion in 2023.
CFLT stock still trades well below its 52-week high of $41.68, but at nearly $30 per share, investors are getting close to the $31 buyout price.
The transaction is expected to close by mid-2026, subject to shareholder and regulatory approval. IBM said the deal will be accretive to adjusted EBITDA within the first full year and to free cash flow in year two after closing.
For Confluent shareholders who’ve endured a bumpy ride since the company went public, this represents a solid exit at a meaningful premium.
And for IBM, it’s another bet that real-time data streaming will be essential as enterprises deploy more AI agents and applications in the coming years.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
