How Netflix, TripAdvisor, and Tiffany Pushed the S&P 500 to Record Highs

Find out why the S&P 500 hit all-time records this week.

May 24, 2014 at 11:35AM

The S&P 500 (SNPINDEX:^GSPC) closed the week at another all-time record high, climbing above the 1,900 mark for the first time ever. Generally optimistic views from market participants helped keep the broader stock market moving ahead. But in particular, sizable gains from Netflix (NASDAQ:NFLX), TripAdvisor (NASDAQ:TRIP), and Tiffany (NYSE:TIF) led the S&P higher and pointed to solid trends that could help support the bull market in the future as well.


Netflix soared 15% as the video-streaming giant started to give some details on its international expansion plans for this year. Although Netflix didn't reveal everything, customers in six European countries, including Germany and France, will start to get service in the near future as Netflix starts to make the necessary preparations to offer streaming in those areas. Given the success that Netflix has had with international expansion in Great Britain as well as Sweden, Norway, Finland, and Denmark over the past couple of years, it's natural for the streaming giant to seek to blanket the European continent in order to give residents a uniform experience they can take with them wherever they travel.

TripAdvisor also picked up 15% on two pieces of conflicting news. On one hand, the Italian government is investigating TripAdvisor's travel-booking website in order to determine whether it's doing enough to prevent false reviews from appearing there and influencing its users improperly. At the same time, though, TripAdvisor finalized its purchase of online restaurant-reservation company lafourchette, boosting its exposure to Europe and giving it a greater capacity to compete directly against other dining-reservation companies. By going beyond mere reviews, TripAdvisor is seeking to give restaurant customers a more complete menu of offerings that add value to their operations, and hopefully, the move will be a win-win for both TripAdvisor and its clients.


Source: Tiffany's Pinterest.

Tiffany gained 7% after the luxury jeweler reported blowout earnings results. With many retailers having had sluggish growth at best, Tiffany saw same-store sales gain 9%, with particularly strong results in the key Japanese market and solid revenue growth throughout the Asia-Pacific region. The conclusion that investors drew from Tiffany's results is that even in times when retailers are facing major challenges, the high-end market can behave much differently. Moreover, given the amount of effort Tiffany has expended to build up and maintain its reputation, customers trust it to give them value even when other companies cut corners in hard times. That's a big part of why Tiffany is well positioned for whatever the future brings.

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Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Netflix and TripAdvisor and owns shares of Netflix. 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.

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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