Three Tech Stocks Outperforming the Dow Jones on Wednesday

Shares of Microsoft, Zillow, and OmniVision were outperforming the Dow Jones early on Wednesday.

Feb 12, 2014 at 11:20AM

The Dow Jones Industrial Average (DJINDICES:^DJI) has shed more than 45 points as of 11:30 a.m. EST. Dow component Microsoft (NASDAQ:MSFT) was notably outperforming its index, while other tech stocks Zillow (NASDAQ:ZG) and OmniVision (NASDAQ:OVTI) also enjoyed outsized gains.

Dow Jones snaps winning streak
The Dow snapped its recent winning streak in early trading Wednesday, pulling back slightly after surging higher on Tuesday. To a large extent, the move lower may have simply been a random pullback following a tremendous run, but some economic news may have affected the market.

St. Louis Federal Reserve Bank President and CEO James Bullard this morning said that despite the recent crop of weak economic reports, he remained undeterred in his optimistic view of the U.S. economy. While that seems positive, some investors might have interpreted his remarks as a suggestion that the Federal Reserve could continue to reduce its stimulative measures.

Zillow rises ahead of earnings
Zillow shares rose nearly 4% on Wednesday ahead of the online real estate website's earnings report this afternoon. Based on the stock's move to the upside, investors are obviously hopeful that Zillow will exceed expectations.

Zillow has been a volatile stock and continues to trade at an aggressive valuation (its current forward price-to-earnings ratio is just short of 200). No matter what Zillow reports this afternoon, the stock could experience a wild swing.

OmniVision bounces back
OmniVision shares were also rising on Wednesday, although with no earnings on tap or much company news. The 2.8% move higher may be simply bounce from yesterday's steep sell-off.

OmniVision shares tumbled on Tuesday following reports that the company would not supply camera technology for the next iPhone. Investors may have been discounting that rumor, as there wasn't any official confirmation.

Microsoft outperforms the Dow Jones
There wasn't any big report to explain Microsoft's rally, suggesting that the 0.7% gain may have simply been a random move.

Microsoft denied a report that it was preventing Chinese websites from appearing in Bing search results outside of China, but that doesn't seem significant enough to affect the stock.

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

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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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.

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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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