Why Electronic Arts, Illumina, and BlackBerry Jumped Today

Strength in some high-profile Dow stocks masked weakness in the broader market, but that didn't hold back some individual companies from big gains. Electronic Arts jumped 12%, Illumina gained 9%, and BlackBerry ended the day with a 6% rise. Find out more about what made these stocks soar.

Jan 17, 2014 at 8:02PM

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.

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Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Illumina. The Motley Fool owns shares of GameStop. Try any of our Foolish newsletter services free for 30 days. 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 has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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