Why Weibo and Logitech Shares are Falling

Shares of Weibo, Logitech, and Microsoft are underperforming the Dow Jones on Thursday.

May 22, 2014 at 11:30AM
Longview

The Dow Jones Industrial Average (DJINDICES:^DJI) was up more than 20 points as of 11:30 a.m. EDT. Microsoft (NASDAQ:MSFT) was the index's worst-performing stock, while fellow technology companies Weibo (NASDAQ:WB) and Logitech (NASDAQ:LOGI) posted more notable declines outside the Dow.

Existing home sales miss
Data on sales of existing homes may have limited the Dow Jones' gain. The National Association of Realtors said 4.65 million used homes were sold last month (a 1.3% bump), less than the 4.68 million that economists had anticipated.

The miss isn't particularly large, but fewer existing homes sold suggests some weakness in the U.S. housing market. A weaker housing market may portend a weaker labor market, as fewer workers move jobs and upgrade to nicer homes.

Microsoft

Source: Wikimedia Commons.

Microsoft's Windows 9
Microsoft shares were down 0.8% on Thursday. Although there wasn't any major news affecting the stock, tech blog Myce claimed to have obtained a document revealing some details concerning Microsoft's upcoming operating system, Windows 9.

According to Myce, Windows 9 will launch in the second or third quarter of 2015. It will bring several improvements, possibly including the inclusion of Cortana, Microsoft's digital personal assistant. While the leak is unverified and may be fake, the details are not altogether surprising.

Weibo falls on earnings
Shares of Chinese social media website Weibo plunged nearly 10% early in Thursday trading. Weibo's sell-off was likely prompted by its earnings report, which did not meet analysts' expectations.

Although Weibo's results for the current quarter exceeded analysts' estimates, its guidance for future revenue was light. Next quarter, Weibo expects to generate revenue of between $74 million and $76 million -- analysts had expected something closer to $78 million. That might not appear to be too significant a miss, but Weibo has been a volatile stock since its IPO back in April, making its sharp decline hardly surprising.

Logitech drops on delayed financials
Shares of Logitech were down nearly 4% early in the session after the maker of PC peripherals warned that its financial results would be delayed. Logitech is being investigated by the SEC over some its previously reported financials, and is conducting an independent probe into its results.

While this shouldn't affect Logitech's business, in terms of its product portfolio and market's demand, the company could be forced to release new financial statements from previous quarters, and could face regulatory fines. Those updated results could show a weaker business than what the company had previously reported, though it's also possible that nothing could come of it. The situation is highly uncertain.

Leaked: Apple's next smart device (warning, it may shock you)
Apple recent recruited a secret-development Dream Team to guarantee their newest smart device was kept hidden from the public for as long as possible. But the secret is out...and some early viewers are even claiming its everyday impact could trump the iPod, iPhone, AND the iPad. In fact, ABI Research predicts 485 million of these type of devices will be sold per year. But one small company makes this gadget possible. And their stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

Sam Mattera has no position in any stocks mentioned. The Motley Fool recommends Logitech International SA (USA). The Motley Fool owns shares of 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.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers