Why Twitter and SolarCity Shares are Surging

Shares of SolarCity, Twitter, and AT&T are rising.

May 8, 2014 at 11:30AM

The Dow Jones Industrial Average (DJINDICES:^DJI) rose more than 79 points as of 11:30 a.m. EDT. AT&T (NYSE:T) was up 2% to outperform its index, while shares of Solar City (NASDAQ:SCTY) and Twitter (NYSE:TWTR) were also surging

Yellen speaks to the senate
Federal Reserve Chairwoman Janet Yellen was back on Capitol Hill this morning, fielding questions from the Senate Banking Committee. The Dow Jones rose over the course of her testimony, suggesting that investors may have been pleased with her comments.

Yesterday, Yellen was more candid in her comments to lawmakers, saying she doesn't believe the U.S. stock market is in a bubble. On Thursday, she spoke more to economic particulars, discussing topics such as inequality (in her words, "disturbing") and the minimum wage (which she said should have some "negative" effect on the job market).

AT&T gets closer to a DIRECTV merger
AT&T shares rose early on Thursday after reports suggested that DIRECTV was speaking with advisers about a potential merger with the telecom giant.

This news lends credence to recent reports of AT&T's interest in snapping up DIRECTV. Assuming regulators allow it, a merger could better position AT&T to offer a bundle of services -- wireless, paid-TV, etc. -- to its many subscribers.

SolarCity rises after earnings report
Shares of SolarCity were up well more than 19% in early trading. The rally appeared to be prompted by an impressive earnings report. SolarCity reported a loss per share of $0.26 on revenue of $63 million, more than double from the prior year.

SolarCity's earnings report led several firms to upgrade the stock, with J.P. Morgan raising the company from neutral to overweight and Roth Capital giving it a boost from neutral to buy.


Source: Wikimedia Commons.

Twitter up on analyst upgrade
Twitter shares rose 6.4% early after Morgan Stanley upgraded the social network from underweight to equal weight.

Morgan Stanley is still cautious on the name, noting that insider stock selling could continue in the near term after the lockup period expired. But Morgan Stanley doesn't believe that Twitter's earnings, at least in the next few quarters, will disappoint investors.

In general, Twitter may be benefiting from a dead cat bounce. Shares are down about 50% from their all-time high hit in December. Twitter still lacks a price-to-earnings ratio, but some value-orientated investors may have been tempted to buy in light of the recent, aggressive sell-off.

The biggest thing to come out of Silicon Valley in years
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 DirecTV, SolarCity, and Twitter. The Motley Fool owns shares of SolarCity. 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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