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
Longview

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.

Microsoft

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.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.


Compare Brokers