Motley Fool Money Grand Theft Auto Comes to Farmville, The Hidden Costs of Trading
Jan 10, 2022
Asit Sharma, a Senior Analyst at Motley Fool, dives into the significant $12.7 billion acquisition of Zynga by Take-Two Interactive and its impact on mobile gaming. He discusses Lululemon's stock struggles and the innovative self-driving tractors from Deere & Co. Later, Maria Gallagher joins the conversation on hidden trading costs in today’s zero-commission landscape, shedding light on the often-overlooked expenses that can affect investors' bottom lines. Their insights offer a comprehensive look at current market dynamics.
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Zynga's Undervaluation and Mobile Gaming
- Take-Two Interactive's acquisition of Zynga, despite a high premium, is likely a strategic move to enter the mobile gaming market.
- Wall Street's negative reaction might be shortsighted, as Zynga has historically been undervalued compared to Take-Two.
Navigating Acquisitions
- When your stock gets acquired, research the acquiring company's financials and strategy through their earnings calls.
- Consider holding onto the new stock if the acquisition rationale aligns with your investment thesis.
Lululemon's Stumble
- Lululemon's lowered expectations, due to staffing shortages and reduced store hours, might be a temporary setback.
- Their strong brand, consistent execution, and international growth potential still make them a compelling investment.