Why Monster Worldwide, Inc. Shares Tumbled Today

Is Monster Worldwide's plunge meaningful or just another movement?

May 1, 2014 at 2:21PM

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Monster Worldwide (NYSE:MWW) plunged more than 18% early Thursday after the company released weaker-than-expected first-quarter results.

So what: Quarterly revenue fell 7% year over year to $198 million, which translated to adjusted net income of $7 million, or $0.08 per share. Analysts, on average, were looking for adjusted earnings of $0.09 per share on sales of $200.86 million.

In addition, Monster Worldwide expects adjusted second-quarter earnings in the range of $0.07 to $0.11, compared to analysts' models that called for Q2 earnings of $0.12 per share on the same basis. 

Now what: To its credit, Monster's adjusted first-quarter earnings did arrive at the mid-point of its guidance, albeit with the help of $40 million in share repurchases at an average cost basis of $7.88 per share. As of March 31, 2014, there was also roughly $54 million remaining under Monster's existing $200 million share repurchase authorization.

Even so, and while Monster did see sequential revenue growth in its Careers businesses last quarter, I'd like to see Monster sustain earnings without relying on buybacks to meet its goals. Better yet, it'd be great to see Monster be able to profitably reinvest some of that money in its business or give investors a choice of where to put its excess cash by paying a dividend. For now, that's why I'm perfectly happy watching from the sidelines.

These six stock picks are poised for incredible growth
In the meantime, there are plenty of other promising stocks in which you can put your money to work. To be sure, Motley Fool co-founder David Gardner has proved skeptics wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

Steve Symington has no position in any stocks mentioned, and neither does The Motley Fool. 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