Why XPO Logistics Inc. Stock Surged Today

Shares of XPO Logistics (NYSE: XPO) flew 14.4% higher Friday after Recode published an article reporting that Home Depot (NYSE: HD) had considered taking over the e-commerce specialist. Unsurprisingly, investors reacted positively to speculation about an acquisition.

Image source: XPO Logistics.

According to the Recode article, Home Depot has held internal discussions about making a bid for the freight, transportation, and logistics provider, whose market cap soared past $10 billion on the news. Part of Home Depot's justification for a bid seems to be to prevent Amazon (NASDAQ: AMZN) from taking over the company; the e-commerce giant has been making inroads into package delivery, including taking a stake in Atlas Air, an air cargo provider, buying thousands of truck trailers, and handling its own last-mile delivery with an Uber-like program called Amazon Flex. But what Home Depot's other rationales for a bid might be are less clear.

Source: Fool.com