Sprint Surges, Sohu.com Drops Following Earnings Reports

Sprint and Sohu.com are moving in opposite directions following their earnings reports. AT&T is leading the Dow Jones higher.

Feb 11, 2014 at 11:20AM

The Dow Jones Industrial Average (DJINDICES:^DJI) rallied early on Tuesday to rise more than 130 points as of 11:30 a.m. EST. Dow Jones component AT&T (NYSE:T) was outperforming its index, while rival Sprint (NYSE:S) surged 3.6%. In the tech segment, Sohu.com (NASDAQ:SOHU) was a notable underperformer. 

Market rises as Yellen testifies
New Federal Reserve Chairwoman Janet Yellen was testifying before a congressional panel Tuesday morning. She asserted that the U.S. labor market remains weak and that the economic recovery is "far from complete."

With the major indices on the upswing, investors may have interpreted her remarks as signalling a dovish outlook, suggesting that during her time as chair, the Fed will remain accomodative, supporting the economy and giving a boost to the stock market.

Analyst positive on AT&T
AT&T shares were up 1.6% following an initiation from Drexel Hamilton. The firm initiated AT&T with a buy rating and $40 price target, suggesting a 25% upside from the current stock level.

Even with Tuesday's rally, AT&T has been a disappointment so far in 2014, underperforming the Dow Jones by about 2%. A brewing price-war in the wireless industry is likely weighing on shares, as AT&T's rivals take aggressive steps to court its subscribers.

Sohu.com drops after earnings
Meanwhile, Chinese Internet company Sohu.com was down 2.4% at 11 a.m, although shares were trending upward as the session progressed.

Sohu.com's fourth-quarter earning came in mixed, with profit beating expectations but revenue falling short. In addition to the disappointing earnings, Morgan Stanley downgraded Sohu.com to underweight from equal weight, and raised concern about the company's margins going forward.

Despite the recent disappointment, Sohu has been a great stock to own in recent years, up nearly 100% from the summer of 2012. Still, it's been particularly volatile, at times experiencing wild swings. In that context, Tuesday's move is relatively tame.

Sprint picks up subscribers
Like Sohu.com, Sprint has been a volatile stock, and that continued on Tuesday, with shares up better than 4% at one point during the session. The rise follows an earnings report in which Sprint beat expectations for subscriber growth, profitability, and revenue.

Although Sprint had been bleeding subscribers in recent quarters, it ended the year with 53.9 million, its most ever. It did lose $1 billion, but that was less than analysts had expected, and less than what it lost in the same quarter last year.

A better investment than Sprint? 
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 recommends Sohu.com. 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