Why Micron Technology, Qihoo 360, and Merrimack Pharmaceuticals Rose Today

The stock market finally headed lower after a long run of winning sessions, but these stocks still held up well. Find out why.

Jun 24, 2014 at 8:03PM

On Tuesday, the stock market fell substantially, giving up what could have been another record run that would have marked the 12th time the Dow had hit all-time highs in 2014. Early in the session, bullish investors focused on solid economic data signaling strength in consumer confidence and new-home sales. But those gains didn't hold, as a large drop in energy stocks helped stocks reverse course and fall, leaving the winners' list looking pretty thin. Among the better performers in the ailing market were Micron Technology (NASDAQ:MU), Qihoo 360 (NYSE:QIHU), and Merrimack Pharmaceuticals (NASDAQ:MACK).


Source: Micron Technology.

Micron Technology rose almost 4% after the memory-chip company announced its latest quarterly financial results last night. Adjusted earnings per share topped investors' expectations by more than 10%, as revenue soared 72% from year-ago levels thanks to Micron's acquisition of Elpida in mid-2013. Prices of Micron's key chips were mixed, with DRAM falling 2% but NAND remaining about flat. Future guidance also pointed toward flat DRAM prices going forward, and with that part of its business making up more than two-thirds of Micron's total revenue, mild growth in production and modest cost reductions look positive for the current quarter. Interestingly, the results weren't good enough to lift the shares in after-hours trading Monday, but key upgrades from analyst firms convinced uncertain investors that Micron's future does indeed look bright.

Qihoo 360's security suite. Image source: Wikimedia Commons.

Qihoo 360 also picked up about 4% as the stock was selected as the bullish stock of the day by analyst firm Zacks. Qihoo has done an impressive job of becoming a game-changing player in the dynamic Chinese Internet space, making waves and disrupting even the leading search-engine provider's dominant position in the industry. As the largest e-commerce company in China comes public soon, Qihoo 360 could see some collateral interest from investors focusing on the space once again, as smart moves like free cloud-based security services to drive interest and demand could well pay off for the challenger in the industry. Obviously, Qihoo 360's larger peers won't go down without a fight, but for now, the upstart Internet player is making all the right moves.

Merrimack Pharmaceuticals gained 6%, bouncing back from a two-day plunge that had sent the stock down by almost 15%. Merrimack's big drop last week came after the company said that partner Sanofi had decided to end its collaboration in developing the cancer drug MM-121. With data raising fears that the treatment won't be as effective as investors had hoped, the vote of no confidence from Sanofi represent just another worry for those who had placed great hopes in Merrimack's success. Even after the drop, though, shares have still more than tripled since last November, and some believe Merrimack still has plenty of upside potential in the long run.

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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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