Why Netflix, Fusion-io, and Logitech International Soared Today

Fears of a sharper deceleration in Chinese growth hit stock markets around the world today, but several stocks managed to post sharp gains. Find out what made Netflix climb 16%, Fusion-io rise 14%, and Logitech International soar 23% today.

Jan 23, 2014 at 8:01PM

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.

For years, stock market investors have been able to count on China to provide more than its share of economic growth to help bolster the global economy. But today, news of a possible contraction in manufacturing activity in China sent stocks tumbling, with the Dow falling to its worst level in 2014. Still, even amid the bearishness in the overall market, Netflix (NASDAQ:NFLX), Fusion-io (NYSE:FIO), and Logitech International (NASDAQ:LOGI) all soared higher today on company-specific news that gave investors confidence that they should be able to overcome any adverse macroeconomic factors.

Netflix climbed 16% after releasing its fourth-quarter results last night. Netflix added 2.3 million new subscribers domestically, and 1.7 million more in its international markets, helping to send its earnings per share above the top of the company's previously projected range. Favorable guidance for the current quarter also heartened shareholders of the streaming-video specialist, making them willing to send the stock higher despite its expensive valuation on an earnings-multiple basis. In addition, Netflix appeared to be considering the possibility of imposing a price increase on its subscribers, potentially boosting its profit even further in the future.

Fusion-io gained almost 14% after its own favorable earnings report yesterday. The company posted a narrower loss than expected, with revenue exceeding expectations despite falling almost 22% from year-ago levels. The stock even overcame somewhat troubling guidance, with Fusion-io's call for, at best, slight gains in revenue in the current quarter likely representing a shortfall compared to investors' current expectations. Given the opportunities in the solid-state storage market, Fusion-io definitely has the capacity to keep rising, but it still needs to demonstrate a lasting competitive advantage in a cutthroat industry.

Logitech soared 23% after the maker of computer accessories reversed a year-ago loss by posting earnings per share of $0.30. Within its retail growth categories, Logitech saw a massive 62% jump in revenue, with tablet-accessories sales almost doubling, and strong growth in audio and PC-gaming products, as well. The company also boosted its guidance for the full 2014 fiscal year, raising revenue estimates by almost $100 million, and boosting adjusted operating income guidance by $20 million to $25 million. Shareholders are definitely pleased with the way that Logitech has capitalized on the rising demand for mobile devices, and the future looks bright for the stock, as well.

You can find more stocks like these
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.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Logitech International and Netflix. The Motley Fool owns shares of Netflix. 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.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.


Compare Brokers