These Two Tech Stocks are Plunging While AT&T Rallies

AT&T is leading the Dow Jones higher even as shares of Symantec and Plug Power are collapsing.

Mar 21, 2014 at 11:20AM

The Dow Jones Industrial Average (DJINDICES:^DJI) rose more than 118 points early on Friday, led higher by telecom giant AT&T (NYSE:T). However, tech stocks Symantec (NASDAQ:SYMC) and Plug Power (NASDAQ:PLUG) were experiencing notable declines.

Kocherlakota dissents
Minneapolis Federal Reserve Bank President Narayana Kocherlakota dissented from the Federal Reserve's interest rate decision earlier this week. On Friday, he asserted in a statement that the Fed was in error by dropping its unemployment rate targeting for action on increasing rates. Kocherlakota believes the Fed should have stated outright that interest rates would be kept near 0% until the unemployment rate hit 5.5%.

Kocherlakota's argument may have been helping fuel the Dow Jones' rally on Friday, as it suggests the Federal Reserve could continue to support the economy for longer than otherwise anticipated. Still, as a dissenter, Kocherlakota is in the minority among monetary policymakers.

AT&T edges up
AT&T shares were up 1% to slightly outperform the index. AT&T announced that it had invested nearly $1 billion in South Carolina in recent years, strengthening its position in the region. The telecom giant also announced that it will report quarterly earnings on April 22.

Plug Power stumbles
Plug Power shares were down more than 8% in early trading. There wasn't any news in particular to explain Plug Power's sell-off, but the stock has been notoriously volatile in recent sessions.

Now trading near $5.50, Plug Power shares have almost been cut in half in just the last few weeks. Still, the fuel-cell company's shares remain far higher than last December, when shares were trading under $2.

Although Plug Power reported a stronger than expected quarter earlier this month, the rapid move in company shares appears to be the product of aggressive speculation -- investors betting on a new energy paradigm. 

Symantec fires its CEO
Symantec shares were down more than 13%. But unlike Plug Power, there was real news to explain the sell-off: Symantec announced that it had fired its CEO on Thursday.

Symantec, the maker of the popular Norton antivirus software, has been pressured by the move away from traditional PCs. The company had been working to turn around its business, but evidently the effort was not going as well as the board anticipated. A new management team could help to reverse Symantec's fortunes, but a fired CEO suggests the business is performing poorly.

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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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