Mellanox Buys Software Smarts, Google Powers Higher, and Rackspace Struggles to Find a Buyer

Mellanox, Google, and Rackspace were particularly interesting tech companies this week. Read on to find out why!

Jun 29, 2014 at 9:00AM

The Dow Jones Industrial Average (DJINDICES:^DJI) lost 96 points for the week or a modest 0.56%. This week in tech, shares of Mellanox Technologies (NASDAQ:MLNX) were volatile following its acquisition of Integrity Project, Google (NASDAQ:GOOG) (NASDAQ:GOOGL) saw a nice push higher following its Google I/O conference, and Rackspace (NYSE:RAX) seemingly ran into a speed-bump in its pursuit of strategic alternatives.


Can Integrity Project bolster Mellanox's software capabilities?
Mellanox is a developer of InfiniBand and Ethernet network interconnect solutions for the datacenter. In particular, its claim to fame over the past few years has been its dominance in the InfiniBand market. However, in a bid to get more exposure to the cloud and Web 2.0 applications (InfiniBand is used mostly in high performance computing), Mellanox has been beefing up its Ethernet efforts.

Though its market share in Ethernet significantly lags that of heavyweights Broadcom and Marvell, the company's management has repeatedly asserted that its hardware is up to snuff but its software solutions need a bit of work. Therefore it comes as no surprise that Mellanox agreed to acquire privately held Integrity Project for its software expertise.

While silver bullets are rare in technology, it will be interesting to see if that acquisition will be able to help Mellanox gain share against the aforementioned heavyweights. The shares closed down 5.45% for the week, underperforming the Dow.

Google's I/O bolsters investors' long-term confidence
Shares of Google closed up 3.38% for the week as investors cheered the multitude of announcements that came at the search giant's annual Google I/O developer conference.


Google's David Burke talks up Android L's neat new features. Source: Google.

In addition to a significantly revamped version of the company's highly popular Android operating system known as Android L, the company announced Android TV, a smart-TV platform, and a number of its hardware partners demonstrated smartwatches based on Google's Android Wear platform.

Google seems to be firing on all cylinders as it continues to bring more users into its ecosystem, ultimately helping to drive its core ad revenue business.

Rackspace continues the hunt for strategic alternatives
Back in May, Bloomberg reported that Rackspace -- which provides web hosting and cloud computing services -- hired Morgan Stanley to evaluate strategic options. Following both the aforementioned reports and a solid earnings report in early May, the shares rallied sharply, gaining over 46% from its pre-earnings lows.

Rackspace Logo

However, a new report from dealReporter claims that Rackspace isn't seeing the interest that investors may have expected. As a result, the shares closed down 7.30% during Friday's session and 9.1% for the week.

Leaked: Apple's next smart device (warning -- it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee that 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 even claiming that its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts that 485 million of these devices will be sold per year. But one small company makes this gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and to see Apple's newest smart gizmo, just click here!

Ashraf Eassa owns shares of Mellanox Technologies. The Motley Fool recommends Apple, Google (A and C shares), and Rackspace Hosting and owns shares of Apple and Google (A and C shares). 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.

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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