The Fool Looks Ahead

Let's look at the stocks that will be making news in the week ahead.

May 24, 2014 at 9:30AM

There's never a dull week on Wall Street. Let's go over some of the news that will shape the week to come.

It's Memorial Day on Monday, and that means that all of the country's market exchanges are closed. Trading resumes on Tuesday, so give the ticker tape-watching a rest. 

The abridged trading week keeps off with Qihoo 360 (NYSE:QIHU) reporting quarterly results after the market close. The company behind China's leading Internet browser and security software suite has turned heads since rolling out its own search engine two summers ago. It's been gaining market share, and Baidu (NASDAQ:BIDU) has responded by throwing its weight behind other online initiatives including online video, group-buying sites, and mobile apps. 

The end result is that both companies are growing quickly despite Qihoo 360's invasion of Baidu's turf. We already saw Baidu post first-quarter results, where revenue soared a better-than-expected 59%. On Tuesday analysts see Qihoo 360's top line shoot 108% higher.

 (NYSE:SDRL) checks in on Wednesday. Wall Street sees SeaDrill's profitability slipping despite a double-digit percentage gain in revenue. Analysts may come off as conservative, targeting just $0.68 a share in earnings, but they have actually overestimated SeaDrill's bottom-line showing in back-to-back quarters.

Net income is a pretty big deal for SeaDrill because investors are drawn to the offshore drilling contractor because of its fat quarterly dividends. SeaDrill shares currently yield 11.1%, but that won't be sustainable if earnings keep going the wrong way.

Splunk (NASDAQ:SPLK) was a hot IPO two years ago, championing in the era of big data. However, the only thing that's been big lately is disappointment. Splunk shares have shed more than half of their value since peaking three months ago, part of the broader correction that has seen many former tech darlings retreat sharply this year. Splunk also helped seal its fate by putting out soft quarterly results last time out, making Thursday's performance that much more important. 

The final trading day of the week is quiet, but that can't be said about Netflix (NASDAQ:NFLX). The leading premium video service is rolling out the second season of Derek. The Ricky Gervais series hasn't resonated the way some of his earlier successes have done in the past. This isn't The Office or even Extras. However, it debuts just seven days before the more widely anticipated second season of Orange Is the New Black starts streaming.

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!

Rick Munarriz owns shares of Netflix. The Motley Fool recommends and owns shares of Baidu, Netflix, and Seadrill. 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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