Earnings Reports Send Cisco and Zillow Lower in After-Hours Session

Dow and S&P 500 finish day lower while NASDAQ heads higher on little economic news.

Feb 12, 2014 at 9:00PM

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.

With little major economic news and Federal Reserve Chairwoman Janet Yellen done with her visit to Congress, the major indexes ended today's session mixed. The Dow Jones Industrial Average (DJINDICES:^DJI) closed the day down 30 points, or 0.19%, while the S&P 500 lost 0.03%, and the Nasdaq gained 0.24%.

Weather concerns may have affected the Dow. With the second big winter storm hitting parts of the Southeast today and expected to run up the Eastern Seaboard tonight and tomorrow, investors sent shares of insurance company Travelers (NYSE:TRV) lower by 1.14% today. You wouldn't think some snow would have people sounding alarm bells, but after the havoc the Jan. 28 storm wreaked on Atlanta, some investors clearly aren't taking any chances and are getting out before Travelers has to make any payouts.

Another big Dow mover today was Cisco (NASDAQ:CSCO) which closed the regular trading day up just 0.49% but lost 4.16% in the extended trading period after reporting earnings. Revenue of $11.2 billion and earnings per share of $0.47 did squeak past analysts' expectations of $11.0 billion and $0.46, but management said third-quarter revenue is likely to fall 6%-8% on a year-over-year basis. As my colleague Alex Dumortier noted earlier, Wall Street was expecting this decline, so this drop in the after-hours seems a little overdone.  

Outside the Dow, shares of Zillow (NASDAQ:ZG) finished the day up 2.67% in anticipation of an after-hours report. But once investors got a look at the numbers, the stock fell 2.22%. EPS of $0.19 and revenue of $58.03 million both beat expectations, but the GAAP net loss was $12.5 million for the full year of 2013, compared with GAAP net income of $5.9 million in 2012. Higher costs, especially in advertising, accounted for the loss, and investors ought to be cutting the company some slack, considering the advertising seemed to pay off: Average monthly unique users grew to 54.4 million during the fourth quarter. That's a 57% year-over-year increase. Zillow is now double the size of its two closest competitors in terms of combined Web and mobile traffic. Tthat's the kind of growth and market position I want to see as an investor, and that's why I won't be selling my shares of Zillow anytime soon.  

Looking for the next big thing? Look no further.
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.

Matt Thalman owns shares of Zillow. The Motley Fool recommends Cisco Systems and Zillow and owns shares of Zillow. 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.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information