Why FuelCell Energy, Rackspace Hosting, and Keurig Green Mountain Jumped Today

The stock market couldn't quite maintain yesterday's strong momentum, but these stocks jumped higher. Find out more about what made them soar.

May 13, 2014 at 8:05PM

After a strong session yesterday, the stock market settled back on Tuesday to consolidate its gains, rising in a much more moderate fashion that nevertheless sent the Dow Jones Industrials and S&P 500 to record highs for the second-straight day. Sluggish economic data on retail sales helped set a somewhat less optimistic tone in the market, but the upward momentum from yesterday's big jump carried over to provide a bit of buoyancy in stocks. Even though most major market indexes were little changed Tuesday, FuelCell Energy (NASDAQ:FCEL), Rackspace Hosting (NYSE:RAX), and Keurig Green Mountain (NASDAQ:GMCR) all finished trading with sharp gains.


Source: FuelCell Energy.

FuelCell Energy jumped 8% after the fuel-cell manufacturer announced a new contract with the largest steelmaker in South Korea, extending its relationship with the company by selling 5.6 megawatts of fuel-cell equipment in order to facilitate the construction of power plants within South Korea. The new order is in addition to ongoing supply contracts that will eventually add up to another 122 megawatts, and FuelCell had already completed a project for 59 megawatts earlier this year. The news validates FuelCell Energy's focus on larger fuel-cell installations, rather than the smaller generation-capacity applications that the company's rivals have emphasized in the past.


Source: Rackspace Hosting.

Rackspace Hosting rose more than 8% after announcing a 16% jump in revenue in its first quarter. Net income fell almost 7%, but that was still better than investors had expected from the cloud-computing specialist. Guidance for the second quarter was also favorable, suggesting Rackspace is finding ways to differentiate itself as a premium provider of cloud hosting services despite the raging price war among larger tech giants in the space. As long as Rackspace can convince customers that its service is worth paying up for, competition based solely on price isn't likely to succeed in taking away the company's market share.


Keurig Green Mountain climbed 7.5% as the maker of the popular Keurig home-brewing coffee and hot-beverage machine got a vote of confidence from partner Coca-Cola. After having made a previous 10% investment in Keurig Green Mountain, the soft-drink giant increased its stake to 16%. Rather than purchasing Keurig Green Mountain shares directly from the company, Coke will make purchases on the open market, potentially boosting the stock price even further. The strategic move puts even more pressure on Keurig Green Mountain to make sure that its planned Keurig Cold beverage carbonator launches successfully and promotes the company's overall growth.

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 has no position in any stocks mentioned. The Motley Fool recommends Coca-Cola, Keurig Green Mountain, and Rackspace Hosting. The Motley Fool has the following options: long January 2016 $37 calls on Coca-Cola and short January 2016 $37 puts on Coca-Cola. 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.

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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."

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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." 

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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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