Why Facebook Stock Skyrocketed

The social network jumped again on a flawless earnings report. Here's what you need to know.

Jan 30, 2014 at 8:08PM

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our thesis.

What: Shares of Facebook (NASDAQ:FB) took off today, gaining as much as 17%, and closing up 14% after posting another blockbuster earnings report.

So what: The social networking giant blew Wall Street out of the water, as revenue soared 63%, to $2.59 billion, well ahead of the analyst consensus at $2.33 billion. Meanwhile, adjusted earnings jumped from $0.17 a share a year ago to $0.31, beating estimates at $0.27. Mobile growth was particularly robust for the year, as daily mobile active users increased 49%, and monthly mobile users grew 39%. In a brief statement, CEO Mark Zuckerberg simply said: "It was a great end to the year for Facebook. We're looking forward to our next decade and to helping connect the rest of the world."

Now what: Facebook's growth continues to seem unstoppable. The company that was widely maligned after its 2012 IPO has now seen shares more than triple from their bottom that summer, as the social network has mastered the mobile ad game and seen revenue growth pick up. The market seems to be particularly excited about the potential of Instagram and video ads, as well, which are promising untapped sources. Apple's falter earlier this week may also show that the future of tech is in the hands of information stewards like Google and Facebook, and not with those like the iPhone maker.

Who will win this tech war?
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Jeremy Bowman owns shares of Apple. The Motley Fool recommends Apple, Facebook, and Google. The Motley Fool owns shares of Apple, Facebook, and Google. 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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