Morning Bell With Jim Cramer: GameStop Shorts Get Squeezed

Jim Cramer shares stock-market news including Visa and Plaid's merger deal, GameStop's stock surge and markets a week after the deadly invasion of the Capitol.
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Dow futures are up slightly Thursday morning as the market reacts to the second impeachment of President Trump and the positive reviews from early trials for the single-shot vaccine by Johnson & Johnson  (JNJ) - Get Report.

In the last episode of Mad Money, Jim Cramer got his first vaccine shot, and he's enthusiastic about the innovative technology and science that will fuel economic and human recovery.

TheStreet's Katherine Ross and Cramer are talking about the Visa and Plaid's merger deal, GameStop's stock surge and markets a week after the deadly invasion of the Capitol by supporters of President Donald Trump.

Visa: Buy Or Sell?

On Tuesday, Visa  (V) - Get Report the credit card giant and Plaid called off their merger, a deal the Justice Department had challenged as anticompetitive. The Justice Department had filed a suit in November to block the deal.

Cramer said he was shocked that Visa thought they could buy Plaid. "That's why the stock is not down that much and people are moving on. These stocks trade on cross-border travel and transactions and there have been very few because of Covid. When worldwide travel opens these stocks can go up 20-25%."

GameStop: Buy Or Sell?

Short sellers of GameStop  (GME) - Get Report stock got squeezed after shares of the videogame retailer spiked nearly 94% on Wednesday, though the gain shrank to about 57% through the market’s close.

Cramer said GameStop  (GME) - Get Report is not doing too well by all acknowledgment. "If you were to look at GME and look at its price targets and what people thought about it. It's a sell, sell, sell and people thought it would go out of business. If you see something like GME it's game over for the shorts theoretically when you have people shooting at it like this. There are more and more places where stocks are running and non-analysts are behind it or at least cheering it on and the actual analysts have to catch up."

Markets a Week After Violence at Capitol Hill

Cramer said he doesn't obviously want violence but pointed out that the propensity for there to be violence at the Capitol has heightened tensions. "It is worrying people. It is not going to discourage long term buyers. It may not even discourage youngers buyers who just can't seem to resist certain stocks."

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