Stocks Plummet Amid COVID-19 Resurgence

Strategic Insights -

As concerns about a new wave of coronavirus infections spread across the nation, the stock market experienced a sharp decline on Thursday, casting a shadow over the anticipated economic recovery. CNBC's Jim Cramer addressed the market's concerns, highlighting key stocks likely to benefit from a new US-China equation under the Biden administration.

Key Takeaways:

  • Take-Two Interactive, a video game publisher, has reached an agreement to acquire Codemasters, a UK-based game publisher, with its board, marking a significant move to strengthen its gaming portfolio.
  • Shares of Take-Two Interactive have surged 50% over the past 12 months, driven by the company's strong fiscal second-quarter results and its ability to engage consumers with new releases and mobile gaming platforms.
  • Microsoft's expansive security offering has been highlighted by Barclays analyst Raimo Lenschow as a key factor in the company's growth prospects, with a potential $30 billion sales opportunity in the security portfolio.
  • Cramer has identified "Biden stocks" that may benefit from a shift in US-China relations, including Boeing, Honeywell, DuPont, Nike, and Apple.
  • Take-Two, Apple, Boeing, Honeywell, DuPont, Nike, and Starbucks are key holdings in Jim Cramer's Action Alerts PLUS charitable trust.
  • The pandemic has reintroduced many people to gaming, leading to increased engagement in both console gaming and mobile gaming.

Statistics:

  • Share price of Take-Two Interactive has increased by 50% over the past 12 months.
  • Microsoft's security portfolio has a potential sales opportunity of $30 billion.
  • Boeing is expected to benefit from the US-China relations shift, with China likely to buy a "ton" of Boeing Max planes.
  • Jim Cramer's Action Alerts PLUS charitable trust holds Take-Two, Apple, Boeing, Honeywell, DuPont, Nike, and Starbucks.

Sources:

  • Katherine Ross, "Stocks fell sharply Thursday as a resurgence of the coronavirus has Wall Street worried that new restrictions aimed at curbing the pandemic will lead to a halt in any economic recovery." (https://www.thestreet.com/markets/stock-market-dow-jones-industrial-average-moderna-vaccine-111220)
  • Take-Two Interactive, "Take-Two Interactive Software, Inc. Reaches Agreement for Recommended Acquisition of Codemasters Group Holdings plc" (https://www.thestreet.com/press-releases/take-two-interactive-software-inc-reaches-agreement-for-recommended-acquisition-of-codemasters-group-holdings-plc-15484593)
  • Cramer on Mad Money, November 6 (https://www.thestreet.com/jim-cramer/game-plan-cramers-mad-money-recap-nov-6)
  • Barclays analyst Raimo Lenschow, "Microsoft Has $30 Billion Dollar Opportunity in Security Software" (https://www.barrons.com/articles/microsoft-has-30-billion-dollar-opportunity-in-security-softwar-51605200718)
  • Jim Cramer's Action Alerts PLUS charitable trust (https://secure2.thestreet.com/cap/prm.do?OID=038652)