Why Zynga and Microsoft Shares are Moving

Shares of Zynga, Microsoft, and Marvell were among the most active tech stocks on Thursday.

Jun 5, 2014 at 11:30AM

The Dow Jones Industrial Average (DJINDICES:^DJI) had risen a bit more than 53 points as of 11:30 a.m. EDT. Microsoft (NASDAQ:MSFT) was one of the index's strongest gainers, while fellow tech stocks Zynga (NASDAQ:ZNGA) and Marvell Technology (NASDAQ:MRVL) experienced notable declines.

The European Central Bank goes negative
The Dow's modest gain might have been helped by the European Central Bank's announcement this morning that it was cutting its bank deposit rate to -0.1%. That means the banks will now be charged for having their money held with the central bank.

In theory, such a move should encourage banks to lend money rather than face a new fee, helping to boost the European economy and drum up further consumption and investment. Whether this works remains to be seen, but European stocks largely rose on the announcement, and that positive momentum may have carried over to the Dow Jones.


Source: Wikimedia Commons.

Microsoft gets an upgrade
Microsoft shares rose nearly 0.7% after FBR Capital Markets raised its rating on the stock to outperform with a $49 price target. Previously, the firm had a market perform rating with a $43 price target.

FBR believes Microsoft's cloud offerings will benefit investors, and that the company's new CEO will successfully transition the Windows business to a computing era largely dominated by mobile devices. 

Zynga continues to shake up management team
Zynga shares, meanwhile, fell nearly 10% in early trading. Such volatility is typical for Zynga, which has experienced wild swings in recent months. Although shares now trade at less than $3, the stock had been worth nearly $6 in early March.

A further shake-up in the social game company's management team may have had some effect on its shares. VentureBeat reported on Wednesday that three top executives had recently left the company, which continues to try to reinvent itself. Given Zynga's struggles, new management may be a good thing, but it also suggests that this turnaround may take longer than anticipated.

Marvell stumbles
Shares of chipmaker Marvell were down more than 5% early on Thursday, though the reason was not clear. There were no major news releases of note.

Like Zynga, Marvell has been a volatile stock, but over the last six months it is still up nearly 10%. Marvell has been a favorite stock among many major investors, including hedge fund manager David Einhorn.

Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its 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 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.

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.

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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." 

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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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