Sirius XM Jumps While Target Warns More Problems May Be Ahead

Major indexes decline as consumer sentiment figures fall, and issues in Ukraine bubble up again.

Mar 14, 2014 at 9:00PM
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This morning, the preliminary Thomson Reuter/University of Michigan consumer sentiment index reading of 79.9 in March was released. That figure is lower than the 81.6 in February, and below the 81.8 that economists were expecting. That news, combined with increased uncertainty and rising tensions about the situation with Russia, was enough to push the major U.S. indexes lower today. The Dow Jones Industrial Average (DJINDICES:^DJI) lost 43 points, or 0.27%, the S&P 500 fell 0.28%, and the Nasdaq dropped 0.35% today.

One widely followed stock, Sirius XM (NASDAQ:SIRI), made news of its own this morning as the company announced it was reinstating its share buyback program after Liberty Media (NASDAQ:LMCA)decided to drop its bid to acquire the remaining 47% of Sirius that it doesn't own already. Furthermore, Sirius's management said that it remains confident it will have net subscriber additions of 1.25 million in 2014, produce more than $4 billion in revenue, and have more than $1 billion in free cash flow. Shares of Sirius XM rose 2.08% today, while Liberty Media jumped 7.22%.  

In the world of retail, there were a number of interesting develops today. One that was quite shocking came from Target (NYSE:TGT). Management warned this morning that the data breach the company experienced last year may have been more extensive than what was previously reported. The statement indicated that the information accessed or stolen may not have been limited to the 40 million customer credit card records, or the 70 million pieces of customer data. While at this time, the company is not hinting at what else may have been compromised, management warned that the company's losses may increase due to the ongoing situation, and the reputation of the business could further experience damage. Shares of the retailer fell 0.62% during the regular trading session.

Another retailer, GameStop (NYSE:GME), had a wonderful day, as shares rose 5.01%. The move came following a report from research firm NPD that found that video game sales came in much better than expected last month. Analysts were expecting sales to tumble 29% when compared to a year earlier, but they fell only 9%. Michael Olson from Piper Jaffray commented on the decline, saying that results were better than expected, and that he still has confidence in the industry. Olsen believes the industry will see improved results, and sales will grow heading into the next holiday shopping season as more gamers update consoles.

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Matt Thalman owns shares of Sirius XM Radio. The Motley Fool owns shares of GameStop, Liberty Media, and Sirius XM Radio. 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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