This Tech Stock is Plunging Even as Microsoft and Micron Surge

The Dow Jones Industrial Average (DJINDICES: ^DJI  )  had rallied 92 points as of 11:30 a.m. EDT. Microsoft (NASDAQ: MSFT  ) was the index's top-performing stock, while fellow tech stocs Micron Technology (NASDAQ: MU  )  also surged to the upside. BlackBerry (NASDAQ: BBRY  ) , however, shed more than 2% early in the session.

Yellen reiterates Fed's commitment
Perhaps helping to fuel the Dow Jones' rise, Federal Reserve Chairwoman Janet Yellen on Monday reaffirmed the Fed's commitment to continue supporting the U.S. economy. While the central bank has been slowly curtailing its asset purchase program, Yellen said in a speech that it needed to remain aggressive, as there is still "considerable" slack in the U.S. labor market.

As long as the Fed remains stimulative, stocks could continue to move higher.

Microsoft continues recent rally
Microsoft shares have been moving to the upside in recent weeks, posting another 2% gain by late morning Monday. Microsoft's decision to release its Office software on the Apple iPad has been met with universal praise, and it appears to be working well -- Office has already climbed to the top of the App Store since being released late last week.


Source: Wikimedia Commons.

In order to edit or create documents, iPad owners need a subscription to Microsoft's Office 365. Given the popularity of Office, it seems that Microsoft may have picked up more than just a few subscribers over the weekend.

Micron rallies ahead of earnings
Micron Technology was one of the top performing stocks in the overall market, up 6.5% in early trading. Micron is set to release earnings figures later this week, and investors may be buying up shares in anticipating of a strong report.

Shares may also be rising in the wake of its addition to the Barron's 400, an index of 400 reasonably priced growth stocks.

BlackBerry hit by downgrade
Shares of the Canadian handset maker were likely falling due to a downgrade from Credit Suisse. Citing issues with the company's turnaround, analyst Kulbinder Garcha cut his rating on the stock to underperform and lowered the price target from $7 to $6.

In particular, Credit Suisse found issue with the company's free cash flow burn. Credit Suisse believes BlackBerry has enough cash to survive the next three years, but that further cash burn could make things difficult. Moreover, increased competition in the smartphone space will weigh on BlackBerry's hardware business.

Get our top stock pick for 2014
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2896739, ~/Articles/ArticleHandler.aspx, 12/19/2014 8:39:39 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement