Amazon Pops on New Phone, and FedEx Earnings Reveal Stingy Americans

The two things you need to know on June 19.

Jun 18, 2014 at 11:00PM
Word on the street that Wendy's is bringing back the "pretzel burger" this summer wasn't the only thing exciting Wall Street on Wednesday. The Dow Jones Industrial Average (DJINDICES:^DJI) popped 98 points on some solid economic news from the Federal Reserve. Let's see what happened with a couple of individual stocks.

1. Amazon stock jumps after unveiling first smartphone
It's coming to your pocket, and you will order with it. (NASDAQ:AMZN) unveiled its first ever smartphone, the Fire. It's battling head-on with Apple and Samsung in its quest to help you to buy stuff instantly, even while you're jogging on a half-marathon. The phone has a 3-D camera that can identify those hot-pink Nike running shoes your rival is wearing so that you can buy them with the touch of your finger.

The stock rose 2.7% Wednesday after CEO Jeff Bezos hosted the Apple-esque presentation. If you've had problems being able to quickly act on your shopping cravings, then the Fire's for you. It's selling at $100 less than its iPhone equivalent, but it's available on AT&T only. Bezos took a picture of a spectator's smile and the phone proposed he buy Crest Whitestrips using the free one-year membership of Amazon Prime that comes with the phone.

Amazon's goal is market share, and it always has been. The company is famous for eschewing profits in favor of conquering your spending habits. The Kindle, the Fire TV Set, and the "Dash" (which lets you scan barcodes of groceries in your pantry and then quickly order them) are getting a hold of tech-savvy purchasers -- but Amazon isn't satisfied.

The takeaway is that this is a risky move. Microsoft, BlackBerry, Nokia, and others have all gone down in flames in the hyper-competitive smartphone market. The Fire phone has huge development costs, but it could change the way people buy -- instantly. Investors were happy Wednesday, but it remains to be seen if people renounce their citizenship in favor of

2. FedEx earnings prove Americans stingier with shipping
Special delivery for shareholders of FedEx (NYSE:FDX). The global shipping company specializing in express deliveries announced that earnings grew significantly from last year in the quarter ending May 31. Revenues grew 3.5% from last year to $11.8 billion, and profits beat expectations with $2.46 a share. Investors were overjoyed with their 5% stock jump gift.

After freezing weather destroyed FedEx's prior quarter, the increase was expected. The company is also going to change pricing from weight-based to volume-based..

The takeaway is that FedEx announced bold plans last year to boost profits by $1.6 billion by 2016. It's probably not going to happen. The CEO has seen several quarters go by, and consumers are opting out of express and high-priced delivery options in favor of the thrifty (and George Costanza-approved options). The old calculus of the pre-financial-crisis era may not come back. FedEx won Wednesday, but shipping business ain't as hot as it used to be.
As originally published on

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Jack Kramer and Nick Martell have no position in any stocks mentioned. The Motley Fool recommends, Apple, FedEx, and Nike and owns shares of, Apple, Microsoft, and Nike. 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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