The Dow and Verizon Fall, While Hot Tech iRobot and Tesla Climb Higher

The major indexes are mixed today after a few Dow components reported weaker than expected forecasts.

Jan 21, 2014 at 1:00PM

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.

A few mixed earnings reports and rumors that the Federal Reserve will further cut its asset purchase amount at its next open committee meeting has investors flustered and the markets tanking. As of 1 p.m. EST, the Dow Jones Industrial Average (DJINDICES:^DJI) is down 80 points, or 0.5%, while the S&P 500 is higher by 0.05% and the Nasdaq is up 0.38%.

A number of Dow components released earnings this morning, and the biggest loser within this set is Verizon (NYSE:VZ) which has lost 2.1% of its value so far today. The telecommunications company reported fourth-quarter revenue of $31.07 billion and earnings per share of $0.66, which both slightly beat analysts' expectations. But it seems the company's announced intention to acquire Intel Media is hurting the stock price. Intel Media is a start-up business within chip maker Intel that is focusing on Internet-based TV services. In the past we heard that Intel was looking to create a universal DVR device that would record every program on every channel and store them for a certain period of time, allowing users to stream those videos at their convenience. This certainly sounds like a crazy idea and could be the reason investors don't like the acquisition announcement.  

Outside the Dow, the valuation and share price of iRobot (NASDAQ:IRBT) continues to be stretched, as the stock is up 2.4% today. Investors have speculated for months that iRobot could be a new takeover candidate, as Google and have been on robotic buying sprees the past six months. But, as a few of my colleagues and other analysts have noted, the iRobot now just operates in the home cleaning business, which doesn't show a whole lot of growth and potential moving forward.  

Shares of the controversial and high-flying high valuation stock Tesla (NASDAQ:TSLA) are up 6.2%. The move comes as CEO Elon Musk is reportedly discussing the so-called "recall" the company is performing with its charging units. Musk is asking the National Highway Traffic Safety Administration to not refer to it as a recall, since Tesla decided to perform the fix without a federal mandate and because this is just a precautionary step to help minimize an already unlikely danger of fires from charging . Additionally, it's being reported this morning that hedge fund Blue Ridge Capital has taken a 500,000-share position in Tesla worth $96 million. This is another vote of confidence for the electric car manufacturer since the position was recently opened.  

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Fool contributor Matt Thalman owns shares of Intel and Tesla Motors. The Motley Fool recommends Intel, iRobot, and Tesla Motors. The Motley Fool owns shares of Intel and Tesla Motors. 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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