Zynga and AOL Surge as Dow Jones Rebounds

Zynga and AOL lead the markets higher on the day Dow Jones component Microsoft names its next CEO.

Feb 4, 2014 at 11:20AM

The Dow Jones Industrial Average (DJINDICES:^DJI) rebounded on Tuesday, adding nearly 70 points as of 11:30 a.m. EST. Zynga (NASDAQ:ZNGA) and AOL (NYSE:AOL) were two notable outperformers, while Microsoft (NASDAQ:MSFT) was up slightly on the session.

Factory orders fall
According to the Census Bureau, factory orders were down 1.5% last month. Still, that number should be seen as a positive, as it exceeded expectations. Prior to the release, economists anticipated a drop of 1.7%.

Factory orders aren't the most important economic indicator, but they are a broad measure of economic activity. More factory orders suggests consumers and businesses are purchasing more durable goods -- indicating a strengthening economy.

Microsoft names new CEO
Microsoft was up 0.3% in late-morning trading after the tech giant announced that longtime executive Satya Nadella would be its next CEO, succeeding Steve Ballmer, who will remain on Microsoft's board.

Meanwhile, co-founder Bill Gates has stepped down as board chairman in order to work as a technology adviser for the company. Gates will work at Microsoft part time on new consumer products.

Nadella was widely expected to take the job, after several media outlets reported last week that Microsoft was in the final stages of its CEO search. Nadella is an insider, having worked at Microsoft for 22 years, and he brings a focus on the cloud -- an area of intense interest for Microsoft going forward.

Zynga gets upgraded
Zynga shares rose more than 6% in late-morning trading. Zynga has been an extremely volatile stock since its late-2011 IPO, but the move on Tuesday was likely prompted by an upgrade at UBS. The firm bumped its rating on the social media game provider up to buy from neutral, with a $6 price target. UBS said it likes Zynga's new management team and the company's commitment to cost-cutting.

Asset manager buys into AOL
AOL was up 5% early in the session. The Internet media company's rally follows Iridian Asset Management's disclosure  that is now owns 9.3% of AOL. It is a passive stake, so investors shouldn't expect the firm to push for major changes, but Iridian clearly believes AOL is undervalued.

Iridian describes itself as an asset manager that looks to take advantage of companies in transition. In that respect, AOL fits the mold. AOL has been undergoing a bit of a restructuring in recent months, most notably selling off its local news network, Patch. This has attracted analyst interest, and now investors seem to be getting on board.

A better investment than Zynga? Get our top stock pick for 2014
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

Sam Mattera has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft. 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.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

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.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

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. The show is also heard weekly on dozens of 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. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers