Why WellCare Health Plans, ReachLocal, and Jive Software Tumbled Today

Stocks were only narrowly lower today, with investors retaining much of their cheerful mood from earlier in the week. But earnings-related news pulled these stocks down. Find out the details here.

Feb 12, 2014 at 8:31PM

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.

Investors took a break from the impressive gains that stocks have posted over the past several days, with major-market benchmarks inching downward by the smallest of margins. Yet despite the overall resilience of the market, WellCare Health Plans (NYSE:WCG), ReachLocal (NASDAQ:RLOC), and Jive Software (NASDAQ:JIVE) had their shares lose substantial amounts of value today, with earnings news driving all three of their stocks lower.

WellCare fell 9% as earnings came in below expectations despite a 23% jump in revenue for the health insurers. The big problem, though, is that WellCare anticipates a huge amount of added costs due to Obamacare in 2014, and so the company gave guidance that was 20% to 25% below previous forecasts for earnings per share this year. With so many other insurers also vulnerable to the vagaries of the Affordable Care Act, WellCare's performance today bodes ill for the industry as a whole.

ReachLocal plummeted 15% after shocking investors with a net loss in last night's report. Revenue climbed 11%, but that was less than most had expected. Moreover, with ReachLocal saying that it would boost spending this year and that revenue for the current quarter wouldn't match up to investors' hopes, the local-commerce company has some investors concerned that its focus area might not generate the growth prospects that it needs in order to justify its share price.

Jive Software finished the day plunging 19% after negative revenue guidance for the current quarter and full-year 2014 outweighed earnings figures that were close to what investors had expected to see. The seller of enterprise social-networking and collaboration software believes that it will be able to fend off competition and deliver superior products that its rivals can't match. Yet investors don't seem to be so sure, especially as Jive will have to beat out both established larger companies as well as new start-ups that will threaten it on both fronts.

Find the best stock you can, and bet big
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.

Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends ReachLocal. 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.

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