BlackBerry Shares Surge on Two Reports

As the Dow Jones rallies, shares of BlackBerry and Facebook are surging. Verizon Wireless is a notable underperformer.

Feb 24, 2014 at 11:20AM

The Dow Jones Industrial Average (DJINDICES:^DJI) was up nearly 150 points as of 11:30 a.m. EST. Tech stocks BlackBerry (NASDAQ:BBRY) and Facebook (NASDAQ:FB) were both showing impressive gains early in the session. Dow Jones component Verizon Communications (NYSE:VZ), however, was underperforming its index.

Markets near all-time highs
With Monday's rally, the Dow Jones was only about 300 points away from its all-time high. There didn't seem to be much economic news to explain the move, as there were few relevant U.S. data points released Monday.

European data did come in better than expected, which might have spilled over into U.S. markets. The latest reading on German business confidence came in at 111.3, slightly above the 110.6 economists had anticipated. At the same time, inflation in the eurozone was accelerating faster than anticipated, with a reading of 0.8% above the 0.7% estimate. Both measures suggest that the European economy might be strengthening, a positive sign for U.S. multinationals.

Verizon slumps on business update
Verizon was not participating in the Dow rally, down nearly 1% early in the session. The wireless provider said on Monday that its finalized deal to take full control of Verizon Wireless would boost earnings per share by about 10% and grow consolidated revenue by about 4% in 2014. Investors may have been expecting more. Last week, Verizon rallied after analysts at Jefferies argued that today's business update would serve as a catalyst to propel shares higher.

Facebook rallies on WhatsApp announcement
Facebook was up 3.2% in morning trading. The rally appears to be fueled by an announcement from messaging service WhatsApp, the company Facebook spent $19 billion on last week, that it would incorporate voice calling into its app later this year. The addition of voice could further boost WhatsApp's user engagement and make it a major competitor to Microsoft's Skype.

BlackBerry surges on reports of Ford deal, BBM expansion
Shares of the Canadian handset maker BlackBerry were up more than 8% early on Monday. Two announcements appeared to be fueling the rally.

The first was that BlackBerry Messenger (BBM) would head to Microsoft's Windows Phone this summer. Like WhatsApp and Skype, BBM is a cross-platform messaging app. If WhatsApp is worth $19 billion, then BBM could prove to be a valuable asset, particularly as it continues to add users on different platforms.

The second was a report from Bloomberg that auto giant Ford could be about to sign a deal with BlackBerry to use its QNX technology to power Ford's in-car connectivity service, SYNC, which was developed in partnership with Microsoft.

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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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