Activision's Takeover Signals More Big Buys Ahead
The new week brought fresh declines on Wall Street, as stock investors once again struggled to deal with rising interest rates. The yield on the 10-year Treasury climbed above 1.8%, and while that's still extremely low by historical standards, the move was enough to send another warning shot across the Nasdaq Composite's (NASDAQINDEX: ^IXIC) bow. As of 12:30 p.m. ET, the Nasdaq was down more than 2%, sending it more than 10% below its recent record highs.
Even in a down market, there was a standout winner among Nasdaq stocks. Activision Blizzard (NASDAQ: ATVI) soared on news that it was an acquisition target, marking continued consolidation activity within the video game industry. Moreover, the size of the deal suggests that companies with a ton of cash on their balance sheets might finally be looking for ways to put that money to use in an increasingly inflationary environment. Below, you'll learn more about what Activision revealed and what it could mean both within the video game industry and elsewhere.
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Source Fool.com
