Why Zulily Inc Shares Jumped Today

Is Zulily's recent stock move meaningful? Or just another movement?

Jun 25, 2014 at 3:10PM

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Zulily Inc (NASDAQ:ZU) were back in style today, climbing as much as 11% after scoring an upgrade from Goldman Sachs.

So what: The volatile flash-sales retailer got bumped up to buy from neutral, as Goldman said Zulily's "hyper growth warrants attention." Indeed, revenue at the website, which targets new moms, grew by 87% in its most-recent quarter as the flash-sales model, which offers deep discounts for a limited time, has proven to be immensely popular. Goldman also noted that the company is on its way to becoming only the third retailer in U.S history to hit $1 billion in its five years of operations, the other two being Amazon.com and Old Navy.  

Now what: Goldman Sachs is one of the country's most-respected financial institutions, and when its analysts upgrade a stock, the move gets attention. Investors, however, shouldn't heed its advice blindly. Zulily shares have been extraordinarily volatile since its $22 IPO in November, peaking at $73 in February before tumbling 30% on a weak earnings report in May. Shares are now near $40 after today's jump. Clearly, Zulily is one of the more exciting companies to come on the market recently, but the company is barely profitable despite the sharp revenue increases. If its sales growth keeps up, the stock should jump in tandem, but investors should expect a wild ride.

Leaked: This coming device has every company salivating
The best investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that will revolutionize not just how we buy goods, but potentially how we interact with the companies we love on a daily basis. Analysts are already licking their chops at the sales potential. In order to outsmart Wall Street and realize multi-bagger returns, you will need The Motley Fool’s new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW.

Jeremy Bowman has no position in any stocks mentioned. The Motley Fool recommends Amazon.com and Goldman Sachs. The Motley Fool owns shares of Amazon.com. 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.

A Financial Plan on an Index Card

Keeping it simple.

Aug 7, 2015 at 11:26AM

Two years ago, University of Chicago professor Harold Pollack wrote his entire financial plan on an index card.

It blew up. People loved the idea. Financial advice is often intentionally complicated. Obscurity lets advisors charge higher fees. But the most important parts are painfully simple. Here's how Pollack put it:

The card came out of chat I had regarding what I view as the financial industry's basic dilemma: The best investment advice fits on an index card. A commenter asked for the actual index card. Although I was originally speaking in metaphor, I grabbed a pen and one of my daughter's note cards, scribbled this out in maybe three minutes, snapped a picture with my iPhone, and the rest was history.

More advisors and investors caught onto the idea and started writing their own financial plans on a single index card.

I love the exercise, because it makes you think about what's important and forces you to be succinct.

So, here's my index-card financial plan:


Everything else is details. 

Something big just happened

I don't know about you, but I always pay attention when one of the best growth investors in the world gives me a stock tip. Motley Fool co-founder David Gardner (whose growth-stock newsletter was rated #1 in the world by The Wall Street Journal)* and his brother, Motley Fool CEO Tom Gardner, just revealed two brand new stock recommendations moments ago. Together, they've tripled the stock market's return over 12+ years. And while timing isn't everything, the history of Tom and David's stock picks shows that it pays to get in early on their ideas.

Click here to be among the first people to hear about David and Tom's newest stock recommendations.

*"Look Who's on Top Now" appeared in The Wall Street Journal which references Hulbert's rankings of the best performing stock picking newsletters over a 5-year period from 2008-2013.

Compare Brokers