Why Barnes & Noble, JD.com, and TIBCO Software Jumped Today

The S&P hit another new record high today, and these three companies posted even bigger gains than the broader market. Find out more about what made them soar.

May 27, 2014 at 8:05PM

Last week's gains weren't enough for stock investors, as several major U.S. market benchmarks reached all-time record levels again on Tuesday. Favorable economic data lifted the entire market higher, but a few stock-specific stories also added to the good news on Wall Street today. In particular, Barnes & Noble (NYSE:BKS), JD.com (NASDAQ:JD), and TIBCO Software (NASDAQ:TIBX) posted impressive gains in today's session.

Barnes & Noble climbed 9% after a report in Barron's over the weekend suggested that the bookseller's stock could double over the next year. The bullish argument notes that if you split out the Nook e-reader business from its traditional retail book-selling business, you might be able to create a more attractive combination of stock spinoffs. Growth investors might look to Nook as having greater potential, while the legacy bookstore business could return capital to investors through dividends. With major investors having gotten out of the stock, recent selling pressure could finally dissipate, allowing Barnes & Noble stock to return to more typical earnings multiples.


Chinese e-commerce stock JD.com gained 14% on its third day of trading after its IPO last week. With shares now up more than 20% from their initial offering price of $19, JD.com looks like a success story waiting to happen. Yet JD.com faces a host of strong competitors in the online-retail space in China, and as more of the big-name players in the industry start to go public in the future, it'll be tough for the company to hold its own against its competition. China still faces questions about its economic health, and although JD caters to customers around the world, the success of China is important to the stock's long-term prospects.

TIBCO Software rose 6% amid speculation that the provider of business-intelligence software and virtualized infrastructure services might become a takeover target. Reports from Germany suggested that enterprise-software giant SAP could be interested in buying out TIBCO Software, and given the big demand for enterprise-based IT lately, the reports don't seem incredible. Still, with TIBCO having recently announced the expansion of a partnership with one of SAP's rivals, it might be awkward to move forward with a buyout bid. Nevertheless, as M&A activity rises generally, you can expect more deals involving tech companies to get done.

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Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Tibco Software. The Motley Fool owns shares of Barnes & Noble. 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.

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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