Stock Market Today: Netflix Soars While GoPro Keeps Shooting Higher

The Dow Jones Industrials looked primed to start the second half of 2014 on a positive note.

Jul 1, 2014 at 9:00AM

The Dow Jones Industrials (DJINDICES:^DJI) looked poised to start off the second half of 2014 with a gain, rising 48 points in pre-market trading. Japan's Nikkei index finished up more than 1%. European stocks had more modest gains, with major markets rising about a quarter-percent to a half-percent. Meanwhile, shares of Netflix (NASDAQ:NFLX) and GoPro (NASDAQ:GPRO) were off to strong starts early this morning, as investors continued to feel optimistic about the high-flying stocks and their future prospects.


Netflix jumped 3.5% in pre-market trading, eclipsing its previous record high, as the streaming-video specialist got an analyst upgrade from Goldman Sachs. The bank believes that Netflix's efforts to boost overall subscriber numbers should keep benefiting from the big push by broadband Internet providers to have customers buy faster-speed connections, with streaming video being the single most important driver of demand for higher bandwidth among most consumers. Moreover, with international expansion efforts going well, Netflix and its scalable model have the potential to push margins higher as more people sign up. Despite ongoing competition from both streaming-video rivals and cable providers offering on-demand video of their own, Netflix has the opportunity to boost profits significantly if it can keep its content costs down.

Image Source: Matjaz Klemencic, GoPro.

GoPro continued its impressive run this morning, gaining another 10% in pre-market trading to add to its 13% rise Monday and bring its overall gain from its $24 IPO price just last Thursday to about 80%. Investors are increasingly optimistic about the wearable-camera manufacturer as they consider the potential for social-media applications that the technology makes possible. Indeed, GoPro itself hopes to transform itself from a hard-core hardware maker into a media company by tapping into its customers' desire to do extraordinary things with their purchases. GoPro is only now starting to figure out a strategy to maximize the revenue it can earn by providing video content to distribution channels. Until the details become available, it'll be tough for investors to put real numbers on the potential for income from the media side of the business. For now, though, hype from its initial public offering should keep investors' attention focused on its stock, with the potential for big downdrafts and future gains along the way.

Investors in the Dow Jones Industrials should keep in mind that stocks often rise on the first day of a new quarter, as new money floods the market. On a holiday-shortened week, though, important news could lead to bigger moves than usual for the Dow, so don't be surprised by market volatility.

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Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Netflix. The Motley Fool owns shares of Netflix. 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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