Dow Drops 5th Straight; Noodles & Company Rallies

Walt Disney falls despite success of "Frozen," Millennial Media soars on preliminary results and CEO transition.

Jan 27, 2014 at 6:03PM

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.

The Dow Jones Industrial Average (DJINDICES:^DJI) fell for a fifth straight day on Monday, as jitters over the stability of emerging markets continued to worry Wall Street. Blue chips have now lost nearly 4% in the past week alone, a sudden sell-off sparked by unexpectedly weak data from China's robust manufacturing sector. Soft December new home sales in the U.S. also failed to reassure the stock market today, although I think taking a broader view of real estate is more helpful for investors. Zooming out a bit, we see that the 428,000 new homes sold in 2013 is actually the most since 2008, which is nothing to scoff over. Despite this silver lining, the Dow still ended lower, shedding 41 points, or 0.3%, to end at 15,837.

Walt Disney (NYSE:DIS) lost 0.7% on Monday, even as its animated feature-length film Frozen continues to impress at the box office. Frozen was the fourth-highest grossing film in the U.S. this weekend, and has been a blowout success since its debut 10 weeks ago. The family film has now taken in nearly $350 million domestically, which makes for a tidy profit considering Frozen's $210 million budget. With the worldwide gross around $775 million and growing, it's a blowout success and a tent-pole film for Walt Disney. This is where Disney's girth and diversification hold back its returns; Frozen's success can only do so much for the $125 billion company's stock price.

On the other hand, $1 billion corporations like Noodles & Company (NASDAQ:NDLS) tend to have a more hyper-focused business model. The newly public company, which has been wildly volatile since its IPO last June, saw shares rally 5.1% Monday. Seven months later, the stock trades for more than twice its $18 IPO price. That said, Wall Street figured Noodles & Company was sold off too steeply last week, when shares tumbled about 7%. It's still tough to value this rapidly growing fast-casual chain, so if you're thinking about investing in this business, make sure you have thick skin and a long-term commitment before you do.

Shares of Millennial Media (NYSE:MM), a mobile advertising solutions platform, also roared higher on Monday, tacking on 9.7%. Although official fourth-quarter results aren't expected until mid-February, Millennial Media shared preliminary results for the fourth quarter that topped the company's previous estimates. Adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, is expected to fall between $5 million and $6 million, a far cry from the zero to $2 million range given before. The company also announced that its current CEO has resigned, and that former Yahoo! (NASDAQ: YHOO) Chief Revenue Officer Michael Barrett will be filling the slot.

6 picks for ultimate growth
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 John Divine has no position in any stocks mentioned. You can follow him on Twitter, @divinebizkid, and on Motley Fool CAPS, @TMFDivine.

The Motley Fool recommends Walt Disney and Yahoo! and owns shares of Walt Disney. Try any of our Foolish newsletter services free for 30 days. 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.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

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.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

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. It's also featured on several dozen 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 ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.

Compare Brokers