Why Electronic Arts, Illumina, and BlackBerry Jumped Today

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

Stocks were a tale of two markets Friday, as the Dow and S&P 500 moved in different directions. The Dow rose due largely to some high-profile gains in two influential card network companies, but broader market measures fell almost half a percent. Still, the gloomy mood didn't hold back shares of Electronic Arts (NASDAQ: EA  ) , Illumina (NASDAQ: ILMN  ) , or BlackBerry (NASDAQ: BBRY  ) , each of which posted solid gains today.

Electronic Arts rose 12%, defying a negative trend that affected most of the video game industry over the holidays. Although the NPD Group cited an overall decline in sales of console and handheld-game software during December, it also highlighted EA's latest entries in the Battlefield, Madden, and FIFA series among the top 10 sellers for the month. An analyst at Cowen argued that EA's total sales jumped 40%, allowing the stock to avoid the fate that game retailer GameStop (NYSE: GME  ) suffered earlier in the week. Moreover, analysts at CRT Capital recommended the stock, setting a $26 price target on the game maker's shares.

Illumina gained 9% after giving details about its strategic road map last night in a press release. The genetics company expects to expand its use of next-generation sequencing technology in areas like the reproductive health and oncology fields, as well as attacking emerging markets. Moreover, Illumina presented products to simplify preparation and analysis of genetic samples, along with its plans for increasing use of genomics in clinics. With some setting the size of Illumina's potential market at $20 billion, the stock could have further to run even after its big gains lately.

BlackBerry picked up 6% after getting a rare positive recommendation from renowned short-selling research group Citron Research. Citron believes that despite BlackBerry's failure to capitalize on its smartphone opportunities, it still has potential as an enterprise software company. With new CEO John Chen taking substantial steps in that direction, Citron put a $15 price target on the stock. Given the number of short-sellers who have bet against BlackBerry, any kind of squeeze could easily send shares soaring higher in the weeks and months to come, even without any fundamental company news.

Get the best stocks you can find
Find winning stocks consistently? They said it couldn't be done. But David Gardner has proved them wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.


Read/Post Comments (0) | Recommend This Article (3)

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.

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: 2800104, ~/Articles/ArticleHandler.aspx, 10/1/2014 12:04:19 AM

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...


Advertisement