Why Casa Shares Are Soaring Today

Casa Systems Inc CASA won a multi-year purchase contract from Verizon Communications Inc VZ.
Verizon looks to invest $40 million in Casa shares, resulting in a 9.9% ownership stake.
Casa will provide its 5G Core Network Functions to Verizon, helping power its public Mobile Edge Compute (MEC) service offering. MEC technology moves computing resources onto cloud servers at the network edge.
Casa provides physical and cloud-native infrastructure technology solutions for mobile, cable, and fixed networks.
"This announcement is an important milestone for our 5G Core and Security Gateway technology, as well as the growth potential of our business," Casa CEO Jerry Guo said. "Our cloud-native approach is at the foundation of today's agreement and represents an important pivot in the telecommunications industry."
Price Action: CASA shares traded higher by 39.3% at $5.42 in the premarket on the last check Monday.