A Fool Looks Back

Let's take a look back at the news that made waves.

May 24, 2014 at 7:30AM

GameStop (NYSE:GME) and Best Buy (NYSE:BBY) proved that you can never leave an out-of-favor retailer for dead. Both chains saw their stocks tick higher on Thursday after posting quarterly results.

GameStop's report was worthy of applause. Earnings per share soared a better-than-expected 28% on a 7% uptick in sales. The release of the Xbox One and PS4 late last year continued to deliver strong hardware sales, and that was more than enough to offset a surprisingly steep 20% drop in software sales.

The key winning factor for GameStop turned out to be that sales of preowned games improved during the period. That's pretty important, since buying trade-ins for a pittance and marking them up for resale after cleaning them up is the small-box retailer's highest margin business. It accounts for less than a third a of sales but nearly half of its gross profit.

Best Buy's stock also moved higher, but that report wasn't exactly worthy of a standing ovation. Sales fell short of Wall Street estimates as comps ticked lower again. The near term won't get any easier, with Best Buy forecasting negative comps through at least the next two quarters. The one silver lining is that margins improved to the point where it blasted through analyst profit estimates. That's huge, but it's still not much of a consolation if Best Buy can't woo back shoppers.

Briefly in the news
And now let's look at some of the other stories that shaped our week.

  • Renren (NYSE:RENN) continues to fade in China. The once promising social-networking website operator posted a nearly 40% plunge in revenue in its latest quarter. The one saving grace is that Renren is now trading for barely more than the value of its cash and investments. . 
  • Tesla Motors (NASDAQ:TSLA) may be making more cars, but it's not having a problem selling them. Its website is now accepting orders for cars to be delivered in late September. The four-month wait is longer than three months that has been the case recently. 
  • CommVault Systems (NASDAQ:CVLT) announced that its Simpana 10 enterprise software is being deployed by IT managed solutions provider UbiStor. CommVault shares took a hit a month earlier on decelerating and weaker-than-expected top-line growth, so the incremental boost is clearly welcome. 

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Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Tesla Motors and owns shares of GameStop and Tesla Motors. Try any of our Foolish newsletter services free for 30 days. 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.

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.

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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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