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
Longview

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).

Mu

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.

File
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.

Leaked: This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier, and more accurately, than anyone else. There is a product in development that will revolutionize not how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. To outsmart Wall Street and realize multibagger returns, see The Motley Fool's new free report on the dream team responsible for this game-changing blockbuster. Click here now.

Dan Caplinger and The Motley Fool have no position in any of the stocks mentioned. 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.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.


Compare Brokers