This Week's 5 Smartest Stock Moves

These five companies got it right this week.

Jan 24, 2014 at 4:45PM

If you're feeling good about the market, you're not alone. Take my hand as we go over some of this week's more uplifting headlines.

1. The American price
It seems that a week doesn't go by without Tesla Motors (NASDAQ:TSLA) making waves. This week it was the maker of luxury electric sedans announcing that it won't be marking up its Model S in China the way that other premium automakers have in the past.

"This pricing structure is something of a risk for Tesla, but we want to do the right thing for Chinese consumers," Tesla explains in the blog entry announcing the launch of its online design studio for sedan buyers in China.

Nice. We don't know how big a market China will be for Tesla. The Model S isn't cheap even without the typical premium. However, Tesla's setting the right tone in distancing itself from the competition in a country with a mandate to embrace electric passenger vehicles. 

2. Apple grows up
The Wall Street Journal is reporting that Apple (NASDAQ:AAPL) will be rolling out a pair of iPhones with larger screens later this year. Chatter about Apple going bigger with the iPhone to catch up to Android's best-selling devices has been going around for some time, but it's always welcome to hear it refreshed from new sources.

The report claims that a device with a screen bigger than 4.5-inches is further along in development than a larger 5-inch model, but both could be out later this year, when Apple has historically updated its smartphone line. 

3. Uncapping the upside
 (NASDAQ:NFLX) shares raced to a new all-time high on Thursday after the company posted blowout quarterly results, but let's key in on the tasty language offered up by the leading video service in hinting that plan rates may move higher as it switches to three pricing tiers in the future emphasis mine:

If we do make pricing changes for new members, existing members would get generous grandfathering of their existing plans and prices, so there would be no material near-term revenue increase from moving to this potential broader set of options. We are in no rush to implement such new member plans and are still researching the best way to proceed.

Before Wednesday's note, Netflix had routinely defended the $7.99 per month that it charges as fair and adequate. That's great for customers, but shareholders were left to ponder the upside given the addressable market for Netflix if $7.99 per month were the ceiling. Apparently it won't be that way forever.

4. It's all relative at Nuance
Nuance Communications (NASDAQ:NUAN) has been a disappointing investment over the past few quarters, but the speech-recognition specialist saw its shares move 7% higher on Wednesday after it offered up preliminary financial results that landed just ahead of the numbers it put out two months ago when it hosed down its outlook.

Nuance is now expected to post an adjusted profit of $0.23 to $0.24 per share on $487 million to $491 million in revenue for the fiscal first quarter that ended last month. Back in November the guidance was for no more than $0.21 a share on $487 million in adjusted revenue.

Hold those confetti launchers! Nuance earned $0.35 a share on $492.4 million in adjusted revenue a year earlier. We're still looking at a slight decline on the top line and a sharp drop on the bottom. However, it's still refreshing to see a company begin to push projections higher in any capacity. It means the situation isn't as dire at Nuance as the company thought it would be just before Thanksgiving. 

5. Amazon may be thinking inside the box
The week kicked off with reports that (NASDAQ:AMZN) was in talks with media giants to introduce an Internet-based pay-TV service. The online retailer eventually denied the reports, but that's probably what it would've said if the talks had yet to turn fruitful. 

If the reports are accurate -- and if Amazon is able to pull this off -- this could be pretty big for a company that has already been beefing up its streaming-video platform. It's no Netflix, but its ecosystem is already in place for digital rentals, purchases, and unlimited streams. 

Watch this space.

The No. 1 Way to Lose Your Wealth Without Even Knowing It
You’ve fought hard to build wealth for you and your family. Yet one all-too-common pitfall could completely derail your dreams before you even know it. That's why a company The Economist hails as "an ethical oasis" has isolated five simple questions you must answer to ensure that your financial future is really secure.

Can you answer YES to all five of these eye-opening questions?
Click here to find out -- before it’s too late!

Longtime Fool contributor Rick Munarriz owns shares of Netflix. The Motley Fool recommends, Apple, Netflix, Nuance Communications, and Tesla Motors. The Motley Fool owns shares of, Apple, Netflix, Nuance Communications, 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.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information