These Two Tech Stocks are Surging While Cisco Falls

Shares of Yandex and Nuance Communications are posting notable gains even as the Dow Jones falls.

Mar 14, 2014 at 11:20AM

The Dow Jones Industrial Average (DJINDICES:^DJI) shed a modest 25 points as of 11:30 a.m. EDT. Dow Jones component Cisco (NASDAQ:CSCO) fell 0.7% alongside its index after the SEC requested the company investigate its Russian operations. Other tech stocks surged, including Russia's Yandex (NASDAQ:YNDX)and Nuance Communications (NASDAQ:NUAN).

Consumer confidence disappoints
Perhaps contributing to the Dow Jones' drop, the Thomson Reuters/University of Michigan initial consumer sentiment index for March came in at 79.9, below economists' expectations of an even 82. While the survey is not considered to be among the most important indicators, the finding does suggest that the U.S. consumer is feeling less confident about the economy than economists had believed. A higher reading may have indicated a greater willingness on the part of consumers to go out and spend, boosting corporate profits and leading the market higher. A disappointing reading isn't a major blow to the market by any means, but it is not a positive sign.

Cisco opens investigation
Bloomberg reported that networking specialist Cisco had opened an investigation into its Russian (and neighboring countries') operations at the behest of the SEC. Ultimately, there could be some bribery-related issues, and Cisco may have violated the U.S. Foreign Corrupt Practices Act. Still, Cisco said it does not believe that the results of the investigation will have a material effect on its finances. Nevertheless, it does leave Cisco open to a negative outcome, and it highlights the company's dependence on foreign markets.

Yandex bounces back
Shares of Russian search giant Yandex were up 3% early in the session, though there weren't any major news items affecting the stock.

Yandex's surge may have simply been a bounce off the company's recent lows. As a Russian stock, the ongoing tensions in Ukraine have weighed heavily on Yandex; even with Friday's rally, shares are still down more than 20% in the last three months. A resolution of the Ukrainian situation could send shares of Yandex sharply higher to levels seen in December.

Nuance surges
Nuance Communications' shares rose more than 4% early in the session. Just before 11 a.m. EDT, the stock spiked sharply to the upside, though it wasn't immediately apparent what was causing the move higher. Activist investor Carl Icahn has purchased almost one-fifth of the company in recent months. 

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Sam Mattera has no position in any stocks mentioned. The Motley Fool recommends Cisco Systems, Nuance Communications, and Yandex. The Motley Fool owns shares of Nuance Communications. 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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