This Tech Stock is Plunging Even as Microsoft and Micron Surge

Microsoft and Micron were two of the market's biggest winners on Monday, but not all tech stocks were rallying.

Mar 31, 2014 at 11:20AM

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.

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Sam Mattera has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft. 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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