Stocks finished higher on Friday as investors cheered progress on vaccine distribution and optimism about the prospects that the economy would recover strongly from the coronavirus pandemic grew.
Traders were upbeat after President Joe Biden doubled his vaccination goal to 200 million shots in his first 100 days in office.
Jim Cramer shares his stock market advice every morning on Jim Cramer Today with Katherine Ross. Readers can also read Cramer’s market coverage with the Morning Bell, Stock Market Today and the Mad Money Recap.
Microsoft’s Possible Acquisition of Discord
Microsoft (MSFT) – Get Report was reportedly in talks to acquire Discord for more than $10 million. Shares of Microsoft are up almost 2% in the past week, and TheStreet looked at the charts of Microsoft to see how to trade the tech giant.
“It’s something that Microsoft needs, and it will fill in a big niche for them,” according to Cramer.
Tesla and Cathie Wood
Elon Musk announced this past week that it will start accepting Bitcoin as payment for Tesla (TSLA) – Get Report vehicles. ARK says that it believes that Tesla could hit $3,000 a share by 2025. Its bear case is $1,500, and its bull case is $4,000 a share by 2025.
Cramer weighs in saying people will buy simply because Cathie Wood predicts it will go to $3,000 a share and identified it early.
‘It’s time for the feds to set some rules,” he says.
Many questions are raised regarding reopening the economy including vaccination requirements, obtaining proof of vaccination, cross ventilation to prevent viral load, and who to listen to.
Wells Fargo: Buy or Sell?
“If Wells Fargo drops down to $36 it’s going to be your savior,” according to Cramer.
He believes that JPMorgan’s analysts are looking to upgrade Wells Fargo from a hold to a buy. Fed’s decision to hold its benchmark lending rate unchanged gives banks some of the best financial conditions under which they operate in at least five years.
GameStop: Buy or Sell?
GameStop (GME) – Get Report was on the rise again this week as GameStop shares bounced higher after their 50%-plus rally on Thursday.
Its shares were up more than 11% in early trading, extending Thursday’s gains which saw the video-game retailer recoup all of its $4.3 billion post-earnings fall that it endured on Wednesday.
Cramer says he’s currently just watching and following the video game retailer.
GameStop also reported this week that another key executive is planning to leave the group as it prepares to release its fourth-quarter earnings.
When to Buy Cruise Stocks
Cramer says to wait to buy cruise stocks due to potential turbulence as we transition from stay-at-home stocks to reopening stocks.
“Now might be the time to hold off because the reopening isn’t going as smoothly as planned,” he says.
Major cruise line stocks such as Carnival (CCL) – Get Report, Royal Caribbean Cruises (RCL) – Get Report and Norwegian Cruise Line (NCLH) – Get Report fell this past week after the CDC said the ban on U.S. cruises until Nov. 1 is still in place.
When to Buy SPAC Stocks
Cramer says that we are at the point of saturation, where the bad special purpose acquisition companies are driving out the good ones.
Some of the top SPACs to watch include Holicity, Soaring Eagle, Replay Acquisition, BowX Acquisition and more.
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