Twitter Plunges, Apple Said Planning iPhone Sales Push

Shares of Twitter, Apple, and Intel are down on Tuesday.

May 6, 2014 at 11:30AM

The Dow Jones Industrial Average (DJINDICES:^DJI) had tumbled more than 86 points as of 11:30 a.m. EDT. Microsoft (NASDAQ:MSFT) fell harder than its index, while shares of Twitter (NYSE:TWTR) plunged. Apple (NASDAQ:AAPL), meanwhile, was just under breakeven after fading from a modest rally.

U.S. trade deficit contracts
The U.S. trade deficit contracted from February to March, according to data released by the Bureau of Economic Analysis. The total U.S. trade gap was $40.4 billion -- economists had been looking for a deficit of about $40 billion. 

Overall, the U.S. trade balance is not considered a major economic indicator, and is unlikely to be behind the Dow Jones' decline. Still, the data suggests a slightly weaker than expected domestic economy, with the U.S. exporting fewer goods than otherwise anticipated.


Source: Lachian Hardy via Wikimedia Commons.

Microsoft could launch another tablet
Microsoft was down nearly 1% in morning trading. The tech giant has scheduled a media event on May 20, during which it is expected to unveil a third Surface tablet. This new version of the Surface is widely believed to be smaller than its predecessors, perhaps sporting an 8-inch screen.

If priced aggressively, the smaller Surface could prove more popular than the existing Surface 2 and Surface Pro 2, which have posted relatively disappointing sales. Last quarter, Microsoft reported Surface revenue of $500 million -- assuming an average selling price of $700, Microsoft may have sold fewer than 1 million Surface tablets last quarter (the company doesn't disclose unit sales data). In comparison, Apple sold more than 16 million iPads during its last quarter.

Apple said to prepare huge iPhone upgrade initiative
Apple is planning a major push that could help drive sales of the iPhone, according to 9to5Mac. Apple intends to email iPhone owners with older models, encouraging them to upgrade.

Given that millions of iPhone owners still sport older devices, including the iPhone 4 and 4S, Apple's sales push could help drive millions of additional sales this quarter. It's unknown if Apple will provide some sort of monetary discount, but it seems likely, given that the company's retail stores are said to be preparing for an iPhone launch-like event.

Twitter plunges on lockup
Twitter shares fell more than 11% in early trading. The move was likely prompted by a major lockup expiration -- insiders, contractually obligated to hold onto their shares, were now able to sell their stock into the public market.

Many of them may have been doing so. Now trading below $35, Twitter's stock is at an all-time low. Admittedly, the stock has been exceptionally volatile since the company's IPO last fall, but since the end of December Twitter shares are now down more than 50%.

Apple's next revolutionary product
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Sam Mattera has no position in any stocks mentioned. The Motley Fool recommends Apple and Twitter. The Motley Fool owns shares of Apple and 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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