Why NQ Mobile, Pandora, and Cisco are Moving on Thursday

Shares of NQ Mobile, Pandora, and Cisco were among the most active tech stocks on Thursday.

Jun 12, 2014 at 11:30AM

The Dow Jones Industrial Average (DJINDICES:^DJI) had fallen 45 points as of 11:35 a.m. EDT. Dow Jones component Cisco (NASDAQ:CSCO) fell alongside the index, while tech stocks Pandora (NYSE:P) and NQ Mobile (NYSE:NQ) were also active.

Retail sales disappoint
Perhaps fueling the Dow Jones' sell-off on Thursday, the Census Bureau said U.S. retail sales rose just 0.3% on a month-over-month basis in May, less than the 0.6% consensus estimate. Core retail sales, which exclude automobiles, rose 0.1%; economists had expected a gain of 0.4%.

Retail sales are just one measure of economic activity, but worse than expected results suggest the U.S. consumer is doing worse than anticipated. 

Cisco leads the Dow Jones lower
Cisco fell more than 1% early in the session to stand as the Dow's worst-performing tech stock. There didn't appear to be much news to explain Cisco's drop; although it was falling harder than the Dow, the move may have been largely due to the broader market sell-off.

Cisco had rallied earlier this week, possibly on speculation that the company would be allowed to repatriate cash held abroad. Senator Rand Paul has been pushing for a tax holiday, which would temporarily lower corporate income taxes. Cisco has over $50 billion in cash on its balance sheet, much of it held abroad. A tax holiday could bring that cash back to the U.S., benefiting Cisco shareholders in the process.

NQ Mobile continues to drop
Shares of NQ Mobile fell 3.3% on Thursday, adding further to its recent weakness. Just yesterday, NQ Mobile shares fell more than 15%.

The software company has yet to release its 2013 annual report, fueling speculation that NQ Mobile may be fraudulent. Muddy Waters, a boutique research firm known for exposing Sino Forest, called the company a "massive fraud" worth $0 per share.

NQ Mobile has attempted to rebuke Muddy Waters' claims, but so long as investors are aware of the accusations facing the company, any delays in financial filings are likely to be met with further selling.


Source: Wikimedia Commons.

Pandora rises despite Amazon's entrance
Pandora shares were up nearly 0.4% early in the session. This comes despite Amazon.com entering the streaming music space.

Amazon Prime members can now access a catalog of more than 1 million songs, streaming them to their PC or mobile device. Amazon's service works more like Spotify than Pandora, but the existence of Prime Music could put further pressure on Pandora's listening numbers if it loses users to the e-commerce king. Pandora's rise suggests investors are discounting such a possibility.

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 recommends Cisco Systems and Pandora Media. The Motley Fool owns shares of Pandora Media. 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.

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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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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.

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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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