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.

A better investment than BlackBerry? Get our top stock pick for 2014
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.

Sam Mattera has no position in any stocks mentioned. The Motley Fool recommends Facebook and Ford. The Motley Fool owns shares of Facebook, Ford, and 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.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

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.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

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. It's also featured on several dozen 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 ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.


Compare Brokers