Why Facebook, Under Armour, and Pitney Bowes Soared Today

On a positive day for the overall market, some big-name stocks posted huge gains. Facebook jumped 14%, while Under Armour soared 23%, and Pitney Bowes climbed 19%. Find out more about what made these stocks soar.

Jan 30, 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.

On Thursday, the stock market kept up its recent track record of volatility, as the S&P 500 jumped more than 1% to regain all of its lost ground from yesterday. Even with the impressive gains for the market at large, several high-profile companies saw even better returns on their shares, with Facebook (NASDAQ:FB), Under Armour (NYSE:UA), and Pitney Bowes (NYSE:PBI) all moving sharply higher today.

Facebook jumped 14% on positive reaction to the social-media giant's earnings report yesterday afternoon. Despite extremely ambitious expectations from investors, Facebook delivered a blockbuster performance, with revenue jumping 63%, and earnings per share posting an 82% gain. The company also reached an important milestone, with more than half of its revenue coming from mobile advertising for the first time in Facebook's history. Optimism about the company's future could send the stock to further gains, even at its current record-high levels.

Under Armour soared 23% as shareholders cheered the athletic-apparel company's strong growth in both its fourth-quarter results and its guidance for 2014. The company produced 35% higher sales in the quarter, leading to a 27% jump in profits. Gross margins also picked up, but more importantly for shareholders, Under Armour expects that growth pace to continue, with revenue gains of 22% to 23% producing a similar operating-income gain of between 23% and 24%. With some investors pointing to the company's still-huge international expansion opportunity, bullish investors are optimistic about Under Armour.

Pitney Bowes climbed 19% as the mail-services turned digital-commerce solutions company managed to improve its revenue for the first time in years. Sales gains of 2% were enough to please investors, even despite an 18% drop in net income. Still, shareholders who remember the disappointment of Pitney Bowes' dividend cut from double-digit percentage yields might well be slow to forgive the company even if it does turn out to be bottoming out from a sales standpoint.

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Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Facebook and Under Armour. The Motley Fool owns shares of Facebook and Under Armour. 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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