Why Seattle Genetics, TripAdvisor, and Freescale Semiconductor Jumped Today

The stock market gave back a small amount of ground today, breaking a four-day winning streak. But several stocks managed to post big gains despite the mixed mood among investors. Find out more about what made them soar.

Feb 12, 2014 at 8:01PM

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 took a pause from their solid advances over the past week, and although the Dow and S&P 500 both technically broke their winning streaks, losses of less than a point for the S&P and just 0.2% for the Dow didn't point to any true change in sentiment. In fact, Seattle Genetics (NASDAQ:SGEN), TripAdvisor (NASDAQ:TRIP), and Freescale Semiconductor (NYSE:FSL) all posted sizable gains on Wednesday, with positive news bolstering their shareholders' sentiment about the companies' prospects.

Seattle Genetics climbed 11% after the biotech company reported earnings results last night. Even though the company's losses rose by almost half, they were much lower than investors had feared. Although results from its Adcetris cancer drug have been mixed, investors are hopeful that other antibody drug conjugate candidates still in development could prove to be even more successful, and that seems to be driving optimism among shareholders today.

TripAdvisor gained 7%, as the online travel-review service managed to boost revenue by a larger-than-expected 25% in the quarter. Earnings fell by about 40%, as expenses jumped by half to weigh on overall margins. But with revenue gains both from advertising as well as subscription and transaction-based sales, TripAdvisor seems to have found a formula to monetize its service and earn consistent profits. That spurred an upgrade by RBC Capital Markets, adding to the feeding frenzy.

Freescale Semiconductor jumped 9% on news that the company had expanded a secondary stock offering to raise more cash. By adding 5 million shares to bring its total offering to 35 million, Freescale will add $92.5 million to its coffers. Even though the stock was offered at $18.50 -- below where the stock opened this morning -- investors nevertheless were pleased that investors could absorb that much supply after the sizable gains the stock has posted recently. Now, the company should be able to pay down high-interest debt, and that could help Freescale boost its profits down the road.

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Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Seattle Genetics and TripAdvisor. 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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