Why Facebook and Twitter are Rising

Shares of Facebook, Twitter, and Cisco are rising on Monday.

May 12, 2014 at 11:30AM

The Dow Jones Industrial Average (DJINDICES:^DJI) had risen more than 104 points as of 11:30 a.m. EDT. Cisco (NASDAQ:CSCO) was one of the top-performing tech stocks in the Dow Jones, while fellow tech stocks Facebook (NASDAQ:FB) and Twitter (NYSE:TWTR) also posted noted rallies.

Markets up ahead of Fed speech
There were few major economic releases early on Monday, none of which was significant enough to move the Dow Jones to a great degree. However, Federal Reserve Bank of Philadelphia Charles Plosser is set to speak at noon EDT.

Plosser is a member of the Federal Open Market Committee, giving him a say in monetary policy. Any comments he makes regarding the Fed's future plans could affect the market in the afternoon session.

Cisco up despite reiteration
Cisco shares rose more than 1% on Monday, despite a negative report from analysts at Credit Suisse.

Credit Suisse reiterated its underperform rating and $20 price target, urging caution for Cisco investors. Compared to other tech stocks, Cisco is not particularly volatile. But this week could be an exception, as the networking specialist will report quarterly earnings on Wednesday after the closing bell.

Facebook kills Camera and Poke
Facebook shares rose more than 3.5% early on Monday after the social network shut down Camera and Poke, two apps designed to compete with Instagram and Snapchat, respectively. 

Competing with Instagram no longer makes sense for Facebook, as it now owns the rival network. Facebook hasn't mounted a credible defense against Snapchat, but with the acquisition of WhatsApp, and a renewed focus on messaging, Facebook could eventually break into Snapchat's market. Investors may have liked the moves, as it could signal a more focused effort from the company. 


Source: Wikimedia Commons.

Twitter bounces back
Twitter shares rose more than 4.5% on Monday, making it one of the best-performing tech stocks during the session, seemingly on the back of a positive note from SunTrust.

SunTrust upgraded Twitter shares from neutral to buy with a $45 price target. SunTrust wrote that it believed Twitter was one of the few Web properties that had shown the enduring nature of its business model, and that after the recent sell-off (Twitter shares had been down nearly 50% from their December high) investors should consider taking a position

Twitter has been a particularly volatile stock, surging shortly after its IPO only to crater on slowing growth concerns and employee lockup expirations. At current levels, there may be some value, though Twitter still lacks a price-to-earnings ratio, as it has no earnings -- it remains unprofitable.

R.I.P. Internet -- 1969-2014

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Sam Mattera has no position in any stocks mentioned. The Motley Fool recommends Cisco Systems, Facebook, and Twitter. The Motley Fool owns shares of Facebook. 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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