Dow Jumps As iRobot Gets Awarded, but Groupon Falls

The blue chips gained 1.2% as iRobot dropped on recognition for its patents. Meanwhile, Groupon finished down 6% after a key executive said he was leaving.

Feb 11, 2014 at 10:39PM

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.

Stocks jumped today as new Federal Reserve Chairwoman Janet Yellen gave her first remarks to Congress, indicating that she will stay the course on the stimulus taper. As a result, the Dow Jones Industrial Average (DJINDICES:^DJI) finished up 193 points, or 1.2%, while the S&P 500 and Nasdaq both closed up more than 1% as well.

In her comments, Yellen said she understands that the economy has not fully recovered: "By a number of measures our economy is not back, the labor market is not back, to normal. There's a great deal of slack in the labor market still." Yellen also said she would focus on reducing long-term unemployment, which spiked to extraordinary highs after the financial crisis, and still remains elevated. The new chairwoman seemed to hit all the right notes in her first appearance, as stocks climbed throughout the day following her comments before the House Financial Services Committee this morning.

Stocks making noise today included Groupon (NASDAQ:GRPN), which finished down 6% after its top product executive, Jeff Holden, said he will leave the company March 18. The timing, coming just a week ahead of the daily-deals specialist's earnings report, struck some investors as odd, perhaps signaling poor performance in the fourth quarter. Groupon said Holden was leaving for another unnamed company, but one that's not a Groupon competitor. The sell-off may just be a jittery reaction to a stock that's made investors dizzy since its 2011 IPO, losing more than 90% of its value at one point, but stability seems to be finally arriving, as the stock has recovered since founder Andrew Mason's departure. We'll learn more when Groupon reports earnings next Thursday. Analysts are expecting an adjusted profit of $0.02 a share.

Moving in the opposite direction was iRobot (NASDAQ:IRBT), as shares finished up 11% after the Roomba-maker was recognized by the Patent Board for "having one of the top patent portfolios overall within the competitive electronics and instruments industry. iRobot was ranked No. 5 overall, No. 2 in "Science Strength," and No. 3 in "Industry Impact." The Patent Board put iRobot ahead of several major electronics makers, and the report is not only a feather in the tech company's cap, but also a reminder that its future products may more than justify the current high price tag even as top-line sales have slowed.

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Jeremy Bowman has no position in any stocks mentioned. The Motley Fool recommends iRobot. 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.

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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