BlackBerry Surges After Upgrade

BlackBerry and Nokia shares are moving higher, while Dow Jones component Microsoft is going nowhere.

Feb 18, 2014 at 11:20AM

The Dow Jones Industrial Average (DJINDICES:^DJI)came back from a modest drop to reach breakeven as of 11:30 a.m. EST. Dow component Microsoft (NASDAQ:MSFT) was slightly underperforming the broader market, while shares of Nokia (NYSE:NOK) and BlackBerry (NASDAQ:BBRY) headed higher.

Homebuilder confidence collapses
The National Association of Home Builders housing market index, a gauge of homebuilder confidence, came in with a reading of 46 for February, sharply lower than the 56 that economists expected.

This data should be seen as a negative for the U.S. economy, and by extension the stock market. However, the reading isn't considered the most vital of economic indicators. Still, it suggests that the U.S. housing market may be weakening.

Nokia finalizes sale to Microsoft
Last Friday, Nokia said the deal to sell its handset business to Microsoft would be finalized by the end of March. While the deal was widely expected to go through, Nokia shareholders seem to be reacting positively.

For its part, Microsoft shares were down just 0.21% on the morning session. Over the weekend, a report from ZDNet indicated that Microsoft was considering releasing a version of Office for the iPad sometime in the near future. Analysts have long called for Microsoft to make such a move, which could result in billions of additional Office revenue.

BlackBerry gets an upgrade
BlackBerry was one of the biggest gainers on Tuesday, rising more than 5% early in the session. Fueling the rally was an upgrade from an analyst at FBR Capital, who raised the rating on BlackBerry from underperform to market perform, largely based on positive momentum.

Investors may also have been reacting positively to Third Point's (the hedge fund run by Dan Loeb) investment in the struggling handset maker. On Friday, Third Point's 13F filing showed that as of Dec. 31, it held more than 10 million shares of BlackBerry.

Given that it's now mid-February, it's possible that Loeb could have already dumped his stake. But the investment suggests that the legendary investor sees something he likes in the Canadian company. Given the volatility in BlackBerry shares, and questions over the company's long-term viability, it's not surprising that a big investment from Loeb would send shares moving to the upside.

Two words Microsoft's Bill Gates doesn't want you to hear...
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Sam Mattera has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft. 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." 

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.

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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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