AT&T, Verizon Lead Dow Jones Lower as AOL Surges

AT&T and Verizon Communications were two of the Dow Jones' biggest losers, while shares of AOL were up strongly on the session.

Feb 3, 2014 at 11:20AM

Monday was shaping up to be another rough day for the markets, with shares of AT&T (NYSE:T) and Verizon Communications (NYSE:VZ) leading the Dow Jones Industrial Average (DJINDICES:^DJI) down more than 184 points as of 11:30 a.m. EST. In spite of the market's drop, AOL (NYSE:AOL) was up more than 4%.

ISM numbers disappoint
Manufacturing data from the Institute for Supply Management came in disappointing on Monday, with a reading of 51.3 falling short of economists' 56.4 forecast. While any reading above 50 indicates growth, a disappointing number suggests that the U.S. manufacturing sector isn't growing as fast as economists had believed. With the Federal Reserve last week reiterating its commitment to drawing down its stimulus program, poor economic data appears to be translating into poor stock performance.

AT&T goes to war with Verizon
AT&T fired another shot at its rival Verizon, and shares of both companies could be falling as a result. Over the weekend, AT&T announced a major new offering that could save families plenty of money and lure them over from the telecom giant's chief rival. Under AT&T's new plan, families get unlimited talk, text, and 10 gigabytes of data for $130 per month for two phones, then $15 for every additional smartphone. In total, a family of five would pay just $175; at Verizon, that same family would pay roughly $300.

Admittedly, AT&T's new plan does not include smartphone subsidies -- families must pay for their own phones outright or use an old phone. Still, it's an aggressive move that could net it many new subscribers. And it's another move in what's quickly becoming a wireless price war in the U.S; while that's good for consumers, shareholders might ultimately be the losers. Verizon and AT&T are both down about 3% in late morning trading.

AOL rises on analyst upgrade
Meanwhile, AOL shares leaped higher on Monday, up more than 8% at one point, before falling back. The catalyst for AOL's move seems to have been a note from Needham. Needham raised AOL's price target from $46 to $57 and reiterated its buy rating. The firm is optimistic about AOL's momentum, believing the company could outperform to the upside.  

AOL's management has been making a number of operational moves in recent months, most notably selling local news network Patch last month.

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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." 

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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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