Dow Drops As Comcast and Apple Rise (to Netflix's Dislike)

Good evening, good lookin'. Here are the three things you need to know on March 25.

Mar 24, 2014 at 11:00PM

One thing we hate: the word "recession." The Dow Jones Industrial Average (DJINDICES:^DJI) dipped 26 points Monday as some banks warned that recent economic sanctions imposed on Russia could send the world's ninth-biggest economy into a recession. And no one in the interconnected global economy likes recessions.

1. Netflix falls after rumors of Comcast/Apple streaming video deal
Apple (NASDAQ:AAPL) is in talks with Internet and cable provider Comcast (NASDAQ:CMCSA) to create a special streaming television service available only to Apple TV users. The elite streaming service would bypass the rest of the Internet's congestion altogether (including Netflix Internet usage) and create a very special "Club Apple" within the Internet.

Comcast controls Internet traffic and might give Apple its own special lane on the Internet superhighway. Earlier in the year, Netflix signed a deal with Comcast guaranteeing it would continue getting top "normal" Internet speeds for its customers, but this Apple "elite" online streaming option would make you feel as cool as when the bouncer lets you cut past the rest the line Saturday night at the Meatpacking District.

A cool Apple TV has been rumored about for years in tech blogs, but Cupertino has only managed a mediocre app-based device that works properly about half the time. This new Apple streaming service would be a step above the rest of the Internet, with streaming quality as good as, well, TV. Wall Street and pretentious television bingers viewers applauded the news, shooting Apple up more than 1%.

What about Netflix? If true, the rumor would mean serious streaming competition from the biggest company in the world (that being Apple). That's why Netflix stock dropped 6.7% Monday. Comcast is cashing in on corporate deals like it's its J-O-B recently (it's hooked up with Time Warner Cable and Netflix, and now it's rumored to have a fling with Apple), and the stock rose another 0.6% on the interesting news.

2. Nu Skin surges after a small Chinese fine
It was a glowing day for the sketchy dermatological rando-product seller Nu Skin Enterprises (NYSE:NUS). Shares popped 18% on Monday on word that the Chinese government was fining the company only $540,000 for illegal product sales, much less than analysts were expecting (plus, six very sorry employees are facing more than $240,000 in individual fines).

By the skin of its teeth, Nu Skin is now going to be able to move ahead with its usual business activities of anti-aging and beauty creams. China's State Administration for Industry and Commerce had accused Nu Skin of misleading customers with exaggerated skin results, while some salesmen simply made some illegal sales. The legal action is over, and investors were happy to hear the news. We'll stick with good ol' fashioned pimple popping.

3. Herbalife rises as three more Icahn disciples get board seats
Famous investor Carl Icahn knows his stuff. The dietary supplement company Herbalife (NYSE:HLF) is a well-known stock of Icahn's (he owns 17%). The company announced Monday that it's so enamored by Icahn's vision and market understanding that it will add three more employees of Icahn's hedge fund to join the board of directors.

That brings Icahn board members to five, and Icahn's loving it. The stock rose 6.7% as investors learned that Icahn would have even more influence on the company. The board of directors is in charge of steering the company by representing shareholders, hiring and firing top management, and making sure shareholders get rich. Icahn's strong track record of making shareholders rich (see Apple, Netflix) made investors want to get involved in the party.


  • March Consumer Confidence
  • New Home Sales and the S&P Case-Shiller Home Price Index

MarketSnacks Fact of the Day: Since 1991, Ukraine has received over $30 billlion in government aid (grants and loans) from the U.S. and Europe -- and $200 billion to 300 billion from Russia in the form of Natural gas subsidies.

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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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