The name of this buyer company is Google. In 2014, the tech giant bought the firm called Nest Labs for $3.2 billion. Nest Lab was producing intelligent smoke detectors and other self-learning security-and-control systems.
After the agreement was announced, the stock of an outside company called Nestor Inc. soared on the news. Nestor used to produce traffic enforcement systems for state agencies before going bankrupt and selling off its assets in 2009. Still, this fact didn’t prevent Nestor’s stock from growing over 1,900% in one day. Most investors were misled by the company’s ticker symbol (NEST).
Interestingly, Nest Labs bought by Google is a private company that isn’t even listed on the stock market. So, the bubble was caused by investors’ ignorance and reluctance to explore the asset.
