Why BlackBerry and Red Hat Shares are Rising

Shares of BlackBerry and Red Hat were two of the best-performing tech stocks on Thursday. AT&T was defying the Dow Jones' slump.

Jun 19, 2014 at 11:30AM

The Dow Jones Industrial Average (DJINDICES:^DJI) had fallen more than 36 points as of 11:35 a.m. EDT. AT&T (NYSE:T) was one of the best-performing Dow Jones components, while tech stocks BlackBerry (NASDAQ:BBRY) and Red Hat (NYSE:RHT) posted notable moves to the upside.

Philly Fed crushes expectations
The Philadelphia Federal Reserve Bank manufacturing reading for June came in at 17.8, better than the 14 that economists had anticipated.

The index measures the strength of the economy in the Philadelphia area. A better than expected reading is obviously a good sign for the economy, and by extension the stock market, but its importance is limited as it measures only a single region. 

Source: Wikimedia Commons.

AT&T gets a new phone
Shares of AT&T rose over 0.2% early on Thursday. AT&T is the only wireless carrier that will offer Amazon's Fire Phone when it goes on sale next month.

The handset is just as expensive as its competition, unusual for Amazon, but offers a number of features no other smartphones have, including a 3D-like effect that Amazon callings dynamic perspective. Buyers also get a free one-year subscription to Amazon Prime.

If the Fire Phone succeeds, it could draw new subscribers to AT&T. Still, the smartphone market is highly competitive, and the Fire Phone may attract few customers.

BlackBerry beats earnings expectations
Canadian handset maker BlackBerry was up nearly 11% after posting better than expected earnings on Thursday. BlackBerry lost $0.11 per share, but analysts had projected a loss of $0.26 per share. Revenue of $966 million was slightly better than estimates.

BlackBerry's results have largely been the product of cost-cutting. CEO John Chen believes the company's handset business should be operating near breakeven by the end of fiscal 2015. That, combined with BlackBerry's enterprise and cloud services, could revive the struggling business. There's also continued speculation that the company could be acquired by a larger mobile player, or a company looking to break into the industry.

Red Hat turns in a solid quarter
Red Hat shares rose more than 3% in the wake of a solid quarterly report. Earnings of $0.34 per share was slightly better than the $0.33 per share estimate; revenue of $424 million was likewise a bit more than the $414 million consensus analyst projection.

Red Hat's solid earnings were a byproduct of corporate demand for the open source software specialist. Red Hat boasted that it now counts 94% of the Fortune 500 among its customer base. Red Hat noted that it closed a record number of million-dollar deals last quarter, as enterprise demand for its information technology cloud services remains high. 

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 InvenSense. The Motley Fool owns shares of InvenSense. 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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