Microsoft Buys Activision? We Take Profit And Increase The Exposure At The Same Time

Summary

  • Nobody saw this coming, but Microsoft is making a huge move (its biggest acquisition ever) in the right and accretive direction.
  • Frankly, when it comes to this deal, we don't care much about Microsoft (although we do analyze the deal for it). It's Activision Blizzard which is in our minds.
  • This acquisition is allowing us to book some great returns on previous ATVI-related trades but also to enter into new trades that make the overall picture even brighter.
  • In short, Microsoft is pushing us to be "Activision" as there's a "Blizzard" of trades/returns that we simply can't/mustn't pass on.
  • This deal is good for ATVI, it's even better for MSFT, but it's mostly welcomed by and accretive for us!
  • Looking for a portfolio of ideas like this one? Members of Wheel of Fortune get exclusive access to our model portfolio. Learn More »

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Please note that this article is based on a few Trading Alerts that were issued on Jan. 18, 2022 to Wheel of FORTUNE subscribers.

What are we doing today in light of Microsoft's (NASDAQ:MSFT) largest

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of ATVI, EA, TCEHY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

TipRanks: BUY rating on $ATVI, $EA, $TCEHY

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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