Plug Power and magicJack are Surging

Shares of magicJack and Plug Power are moving sharply to the upside as the Dow Jones drops.

Mar 13, 2014 at 11:20AM

Even with retail sales data coming in a bit better than expected, the Dow Jones Industrial Average (DJINDICES:^DJI) had lost 72 points as of 11:30 a.m. EDT. Dow Jones component Microsoft (NASDAQ:MSFT) was down 0.3% but still slightly outperforming its index, even as it plans to give away a core product in one large market. Smaller tech stocks magicJack (NASDAQ:CALL) and Plug Power (NASDAQ:PLUG) moved sharply to the upside, after both companies posted better than expected earnings reports.

Retail sales numbers beat expectations
Data on retail sales suggested that U.S. consumers may be doing better than expected. The Census Bureau said retail sales rose 0.3% last month, slightly more than the 0.2% that economists had anticipated. Core retail sales, a measure that removes automobile sales from the data, also rose 0.3%, again better than the 0.2% estimate.

Although better than expected retail data should be a positive sign for the markets, investors seemed unfazed. With the Dow Jones already trading near its all-time high, marginally positive economic data may not be enough to send stocks higher.

Microsoft will give away Windows Phone in India
According to The Times of India, Microsoft will give away its Windows Phone operating system to Indian smartphone manufacturers, as it struggles to gain market share in the world's second-most populous country. Android, which outside of some patent fees is free to use, remains dominant in India.

Giving away Windows Phone should help Microsoft build its market share, though it runs counter to the company's long-standing business strategy. Historically, Microsoft has always sold its software for a fee.

Plug Power and magicJack report earnings
Shares of Plug Power and magicJack were surging to the upside, respectively up 8.6% and 19.5%,  on Thursday, after both companies turned in quarterly earnings reports that beat analysts' expectations. Both stocks are smaller, and historically volatile, making their outsized gains not particularly surprising. Still, double-digit percentage gains are always notable.

Fuel-cell company Plug Power reported earnings of $0.08 a share on revenue of $8 million -- just slightly above analysts' expectations. Plug Power's CEO said the company expects 2014 revenue to come in four times greater than its 2013 revenue. Likewise, digital telephone service magicJack posted earnings of $0.69 on revenue of $38 million, easily beating analysts' expectations of $0.41 per share earnings on $36 million in revenue. Company guidance for the year ahead was also greater than analysts had anticipated.

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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.

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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