Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



The 1 Reason I'm Buying Motricity Again

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

As Valentine's Day approaches, Motricity (Nasdaq: MOTR  ) is having trouble finding love with investors.

"Overhyped stock with only 4 months of public history behind it. Cramer got behind it big time and so his lemmings are pumping it like there is no tomorrow ... as soon as the momentum crowd abandons it, the crash will inevitably follow," Foolish investor Denarii06 wrote in shorting the stock in CAPS in October.

That call now looks prescient. Motricity, which delivers tailored data to mobile phones, is down more than 10% year-to-date, but has been selling off since early December. Color me thrilled.

Well, sort of thrilled anyway. I first opened a position in Motricity at $18.66 a share; I'm down a little more than 11% as of this writing. But I don't think the downtrend will last, and I'm willing to bet real money on being right. (I'll be adding to my position as soon as our Foolish disclosure rules allow.)

Why? Blame Verizon (NYSE: VZ  ) . The New York telecom said this morning in its earnings report that average revenue from data usage rose 19% to $19.97 per month. That's quite a gain for a company that has yet to get its hands on the iPhone.

Yet it's not much of a surprise. Verizon does business with Motricity. So do AT&T (NYSE: T  ) , Sprint Nextel (NYSE: S  ) , and T-Mobile. If Big Red is selling more data, it's even money or better that Motricity is involved. Returns will follow when the Street makes the same connection.

Do you agree? Disagree? Please vote in our Motley Poll below and then leave a comment to explain your thinking. You can also rate Motricity in Motley Fool CAPS.

What will be this year's top stock? We've got a good idea. The Motley Fool has created a brand-new free report called The Motley Fool's Top Stock for 2011. In it, we reveal the little company set to profit from the broadband Internet expansion. Get instant access by clicking here -- it's free.

Interested in more info on the stocks mentioned in this story? Add Motricity, Verizon, AT&T, or Sprint Nextel to your watchlist. 

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Twitter as @milehighfool. You can also get his insights delivered directly to your RSS reader. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is also on Twitter as @TheMotleyFool. Its disclosure policy is revving its engine. Vroom, vroom.

Read/Post Comments (0) | Recommend This Article (11)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1428504, ~/Articles/ArticleHandler.aspx, 10/26/2016 1:30:50 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,196.90 27.63 0.15%
S&P 500 2,139.80 -3.36 -0.16%
NASD 5,257.15 -26.25 -0.50%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

4/9/2013 3:59 PM
MOTR.DL $0.36 Down +0.00 +0.00%
Motricity, Inc. CAPS Rating: **
S $6.38 Down -0.13 -1.92%
Sprint CAPS Rating: **
T $36.47 Down -0.23 -0.63%
AT and T CAPS Rating: ****
VZ $47.80 Down -0.04 -0.08%
Verizon Communicat… CAPS Rating: ****