Apple, Oracle, and IBM Are Among Most Active Tech Stocks on Friday

Shares of Apple, Oracle, and Dow Jones component IBM were moving on Friday.

Jun 20, 2014 at 11:30AM

The Dow Jones Industrial Average (DJINDICES:^DJI) was up more than 37 points as of 11:35 a.m. EDT. Dow Jones component IBM (NYSE:IBM) was a notable underperformer, while Oracle (NYSE:ORCL) experienced a significant decline. Shares of Apple (NASDAQ:AAPL) were up modestly early in the session.

No major economic data
There was no major U.S. economic data released on Friday, allowing investors to buy stock without any notable macro concerns.

On a global basis, Bank of Japan Governor Haruhiko Kuroda spoke overnight, saying that the Japanese central bank's recent actions were working and that the nation's economy was improving sharply. Since assuming control of the Bank of Japan, Kuroda has undertaken aggressive monetary stimulus measures. Nevertheless, Japanese stocks finished down slightly on the session, suggesting that Kuroda's comments were having little effect on U.S. stocks.

Oracle tumbles after earnings
Shares of Oracle fell more than 5% early in the session after the enterprise computing giant reported earnings that disappointed analysts. Last quarter, Oracle earned $0.92 per share on revenue of $11.3 billion; analysts had expected earnings of $0.95 per share on revenue of $11.48 billion.

Oracle's business isn't shrinking, but it isn't growing as rapidly as analysts have hoped. Most of its business segments saw only modest gains in revenue, with the exception of new software licenses which stayed flat. Hardware rose only 2%, while software and cloud revenue rose 4%.

IBM among Dow's worst performers
IBM shares fell roughly 0.5% early in the session, making it one of the Dow Jones' worst performers. As a company dependent on the enterprise segment, Oracle's poor results may have been projected onto IBM, although it should be noted that the companies are not pure competitors.

IBM on Thursday announced a deal under which it sold 100 patents to Pure Storage and cross-licensed others. Terms of the deal were not disclosed, leaving investors in the dark, but it suggests IBM's patent holdings have some value.


Source: Wikimedia Commons.

More details on the iWatch emerge
Apple, which was up 0.25%, is widely expected to debut its first wearable gadget, the iWatch, later this year. Last night, Reuters reported that supplier Quanta Computer would begin mass producing the iWatch in July, with Apple expecting to ship 50 million watches within the first year. The watch is said to monitor the wearer's pulse, and to feature a display measuring roughly 2.5-inches diagonally.

This morning, The Wall Street Journal reported that the watch would come in multiple sizes and incorporate more than 10 sensors, some of which will be used for health and fitness tracking. Apple's watch is said to offer functionality dramatically different from current watches on the market, which largely serve only to extend a user's existing smartphone. 

It isn't surprising that Apple shares were experiencing only a modest rally on the news, as investors and analysts have been expecting such a device for many months now. Still, the watch should give Apple a new product to sell and open the doors for future growth.

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 Apple and InvenSense. The Motley Fool owns shares of Apple, International Business Machines, InvenSense, and Oracle. 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.

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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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