This Week's 5 Smartest Stock Moves

These five companies got it right.

May 16, 2014 at 5:33PM

If you're feeling good about the market, you're not alone. Take my hand as we go over some of this week's more uplifting headlines.

1. Coke asks for a coffee refill
Coca-Cola
is boosting its stake in Keurig Green Mountain (NASDAQ:GMCR). The world's largest beverage company announced that it's increasing its stake in the king of K-Cups from 10% to 16%.

This is a big vote of confidence for Keurig, especially since it will be paying quite a bit more for its new shares. Keurig is coming off a better-than-expected quarterly report last week, making May a pretty caffeinated month for Keurig investors.

2. Kidding around
Amazon.com (NASDAQ:AMZN) beefed up its Prime Instant streaming-video platform by rolling out original content last year, and now it's giving children something proprietary to watch. The leading online retailer announced on Thursday that its first batch of original programming for kids will hit its growing digital vault in the coming weeks. 

Tumble Leaf, Creative Galaxy, and Annedroids aren't exactly household names, and establishing a bond with young viewers won't be easy. However, all Amazon needs is a single hit with children who tend to enjoy repeat viewings of episodes they like to make Prime Instant indispensable for families.

3. Mobile madness
The connected car is coming, and AT&T (NYSE:T) will play a prominent role. We've known since early last year that the telecom giant would be fueling the connectivity of the mobile hotspots coming as an accessory to GM cars. This week, we learned that AT&T will be charging just $10 a month for existing AT&T customers to add the hotspot to their Mobile Share plans. Naturally, the data will then come out of the pool of data that customers purchase every month, but it will still be a tempting value.

The first of the 30 different Chevy, Buick, Cadillac, and GMC vehicles with the AT&T-powered 4G LTE connectivity hits the market next month when the 2015 Chevy Malibu becomes available. Road trips just got that much more interesting. 

4. Penney for your thoughts
J.C. Penney (NYSE:JCP) stormed to life on Friday after posting better-than-expected results. The meandering department-store operator posted a narrower loss than analysts were targeting, and the market cheered its 6.2% uptick in comps. 

It's important to take that in stride, particularly given how far comps have fallen in previous years. 

In other words, celebrating a 6.2% uptick in comps comes with the caveat that the average store is still ringing up nearly 30% fewer sales than it did three years earlier. However, given the beating Penney shareholders have endured, a baby step forward is at least a step in the right direction.

5. Netflix is taking over more than just your living room
Netflix (NASDAQ:NFLX) just keeps getting stickier. Internet tracker Sandvine is reporting that the leading streaming-video service is now accounting for 34.2% of peak downstream traffic in North America.

It's a testament to binge viewing and Netflix's success. To put this into proper perspective, Amazon's Prime Instant accounts for less than 2% of the downstream usage. Netflix keeps growing in prominence, and that's good news for investors.

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Rick Munarriz owns shares of Keurig Green Mountain and Netflix. The Motley Fool recommends and owns shares of Amazon.com and Netflix. It recommends Coca-Cola and Keurig Green Mountain and 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.

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