These 3 Tech Stocks are Plunging

Shares of Google, IBM, and Travelzoo are disappointing investors on Thursday.

Apr 17, 2014 at 11:30AM

The Dow Jones Industrial Average (DJINDICES:^DJI) was down just five points as of 11:30 a.m. EDT. IBM (NYSE:IBM) was the index's worst performer, falling more than 3% following disappointing quarterly earnings results. Along those lines, Google (NASDAQ:GOOG)(NASDAQ:GOOGL) and Travelzoo (NASDAQ:TZOO) were down 4% and more than 7%, respectively, after posting poor earnings.

Jobless claims come in below expectations
Initial jobless claims, a indicator of the strength of the U.S. labor market and the economy as a whole, came in better than expected on Thursday. According to the Department of Labor, 304,000 workers filed for benefits last week, less than the 315,000 that some economists had anticipated.

Given that the Dow was largely flat in late-morning trading, disappointing earnings results from a number of major tech components may have offset the positive jobs data.

IBM falls after earnings
IBM was underperforming the Dow after reporting a quarter that fell below expectations. While earnings per share were roughly in line with analysts' expectations, revenue came in light ($22.48 billion versus $22.91 billion).

IBM offered guidance that was better than expected, promising full-year earnings per share of $18 (compared to a $17.84 estimate). Still, that wasn't enough to avoid a sell-off. Investors may have focused on IBM's hardware and systems storage revenue, which both fell 23% on a year-over-year basis.


Source: Enrique Dans via Wikimedia Commons.

Google disappoints
Like IBM, Google also appeared to be the victim of poor earnings results. While quarterly revenue fell in line with analyst expectations, earnings per share missed the consensus estimate by roughly $0.15. During the earnings call, Google management cited the acquisition of Nest Labs as a reason for the miss, as the $3.2 billion purchase contributed to Google's expenses. But there were also some troubling trends afflicting Google's earnings -- cost-per-click (what Google charges advertisers) fell roughly 9%.

Travelzoo tumbles following profit decline
Travelzoo quarterly revenue declined by 5% while its operating income fell 13%. 

Travelzoo has been a disappointing investment in recent months, and Thursday's sell-off only adds to its losses. Year to date, the online travel deal specialist is down more than 15%; at roughly $18 per share, it is worth only about one-fifth of what it was worth in mid-2011.

Google strikes first
The first watches powered by Android Wear will hit the market in the coming months, but Apple is sitting by idly. If you thought the iPod, the iPhone, and the iPad were amazing, just wait until you see this. One hundred of Apple's top engineers are busy building one in a secret lab. And an ABI Research report predicts 485 million of them could be sold over the next decade. But you can invest in it right now... for just a fraction of the price of AAPL stock. Click here to get the full story in this eye-opening new report.

Sam Mattera has no position in any stocks mentioned. The Motley Fool recommends Google-Class C Shares and Google (A shares). The Motley Fool owns shares of Google-Class C Shares, Google (A shares), and International Business Machines. 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.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information