Why Micron, Groupon, and Intel Shares are Rising

Shares of Micron, Groupon, and Intel are up notably on Tuesday.

Jun 24, 2014 at 11:30AM

The Dow Jones Industrial Average (DJINDICES:^DJI) was up 25 points as of 11:30 a.m. EDT. Intel (NASDAQ:INTC) was one of the Dow' Jones' best performers, while tech stocks Micron Technology (NASDAQ:MU) and Groupon (NASDAQ:GRPN) also experienced notable rallies.

New home sales come in better than expected
The Census Bureau said new U.S. homes were sold at a seasonally adjusted annual rate of 504,000 homes last month, more than the 440,000 that economists had expected. On a month-over-month basis, the rate grew by 18.6%, far more than the 1.6% estimate. Keep in mind that home sales numbers have a huge margin of error, so you don't want to look too deeply into any one data point.

However, this is the second-consecutive positive housing report of the week. On Monday, data on existing home sales came in better than anticipated. Combined, the reports suggest the U.S. housing market may be doing better than many believe. A strong housing market indicates an improving labor market, as U.S. workers may be better able to afford homes. That, in turn, may bode well for U.S. stocks.


Source: Wikimedia Commons.

Intel rises on PC hopes
Intel gained more than 1.5% in early trading. The semiconductor giant may have benefited from positive comments on the state of the traditional PC market. Early on Tuesday, Ingram Micro CEO Alain Monie told CNBC that businesses were swapping their old PCs for newer models.

Although Intel has made a concentrated effort at breaking into the mobile chip market, the company remains largely dependent on traditional personal computers. Although Ingram Micro's CEO acknowledged that mobile devices were a long-term threat, he argued that PCs weren't going away, at least in the near future.

Groupon jumps after positive comments
Groupon was one of the best-performing tech stocks on Tuesday, gaining more than 8%. The daily deals giant is in fact something quite different, according to Piper Jaffray -- and that may be benefiting Groupon shareholders.

Groupon has sought to transition its business model from one based on timed, inbox-dependent daily deals to one centered around a marketplace for local discounts. That transition is working, Piper Jaffray argued, and makes it more confident in the firm's outperform rating.

Micron gets an upgrade
Micron Tech shares, up nearly 5% by late morning, were similarly benefiting from an upgrade from Needham.

Needham had been positive on Micron, but is now even more so, raising its rating on the chip company from buy to strong buy. Needham believes Micron Tech shares are worth $50, suggesting an upside of more than 50% from current levels.

In particular, Needham is optimistic about Micron's NAND business, arguing that the segment's gross margins are materially improving. Additionally, Needham believes that Micron will eventually benefit from its proprietary solid state solutions as they ramp up over time.

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, Intel, and InvenSense. The Motley Fool owns shares of Apple, Intel, and 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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