Why King Digital Entertainment, Intermune, and Pharmacyclics Jumped Today

The stock market bounced back from big losses early in the day to post modest gains. These three stocks helped set the tone with impressive moves higher. Find out more about what made them soar.

May 5, 2014 at 8:05PM

This morning, it looked as though Monday would be a horrible day for the stock market, as worries about the health of China's economic growth and ongoing turmoil in Ukraine combined to send stocks falling at the open. Slowly but surely, though, stocks clawed their way back to small gains, and King Digital Entertainment (NYSE:KING), Intermune (NASDAQ:ITMN), and Pharmacyclics (NASDAQ:PCYC) had some impressive moves higher in their share prices today.

Source: King Digital Entertainment.

King Digital Entertainment gained 8.5% after the maker of Candy Crush Saga got favorable ratings from several analyst firms. The firms pointed to the King Digital's potential to continue monetizing Candy Crush Saga and the company's other game offerings well into the future, with King Digital well-poised to keep profiting as mobile devices get more common not just in the U.S. but worldwide. The analysts' arguments attempt to counter the market's perception that King Digital is too dependent on its primary game, raising fears that it will flare out like other mobile-gaming companies before it. It's important to remember, though, that among the analysts making positive assessments on the stock were the lead underwriters on King Digital's IPO, and while the recommendations are supposed to be independent of the underwriting relationship, you'll want to draw your own conclusions about how much weight you give them.

Intermune rose 7%, adding to its 2% rise on Friday after the biopharmaceutical company impressed investors with its first-quarter earnings report. Intermune's losses were slightly larger than in the year-ago quarter, but sales of the company's idiopathic pulmonary fibrosis treatment Esbriet almost tripled from last year and rose 18% sequentially from the previous quarter. Although Esbriet is available in Europe, Intermune plans to resubmit an application for approval from the Food and Drug Administration in the U.S. after mid-year. If the FDA approves the drug, then Esbriet could launch as early as next spring. Although widening losses are always troubling, the fact that Intermune has demonstrated success with Esbriet is a positive sign for its future.

Pharmacyclics climbed 8%, regaining every bit of the ground it lost last Friday after its own earnings report failed to inspire the same confidence that Intermune's did. The maker of mantle-cell lymphoma treatment Imbruvica saw total sales soar as a result of the drug's approval and milestone payments associated with its success, turning a year-ago loss into a substantial profit. On Friday, investors seemed disappointed by Pharmacyclics' revenue guidance for the full year, which fell far short of what analysts were expecting. But given the demand for promising treatments, investors might well have decided Monday that Pharmacyclics has potential not just in its own right as an independent company but also as a possible takeover candidate.

Warren Buffett just bought nearly 9 million shares of this company
Imagine a company that rents a very specific and valuable piece of machinery for $41,000 per hour. (That's almost as much as the average American makes in a year!). And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report details this company that already has over 50% market share. Just click here to discover more about this industry-leading stock, and join Buffett in his quest for a veritable landslide of profits!

Dan Caplinger and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. 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.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.

Compare Brokers