COF Acquires Brex for $5.15 Billion

AI Summary

Author argues Capital One's acquisition of Brex for $5.15B is undervalued and a long-term play despite Q4 miss.

COF — LONG The author believes Capital One's acquisition of Brex for $5.15B is a massive long-term play, as Brex was previously valued at over $12B and provides a fintech stack to integrate with Capital One's balance sheet and Discover's payment rails. The combination could create a vertically integrated 'Amex killer' competing on tech. The next few months may be choppy during integration, but the dip is seen as a gift if integration succeeds.

this feels like a massive long-term play. If they pull off the integration, this dip looks like a gift.

Score 5

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u/TheRaul5677070 Reddit r/ValueInvesting

COF long on undervalued Brex acquisition

The author believes Capital One's acquisition of Brex for $5.15B is a massive long-term play, as Brex was previously valued at over $12B and provides a fintech stack to integrate with Capital One's balance sheet and Discover's payment rails. The combination could create a vertically integrated 'Amex killer' competing on tech. The next few months may be choppy during integration, but the dip is seen as a gift if integration succeeds.

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