Why NQ Mobile, Synnex, and Weibo Tumbled Today

Even as the stock market soared on a positive jobs report, these three stocks fell. Find out why.

Jul 3, 2014 at 3:30PM

The stock market celebrated the July 4 holiday a day early on Thursday, with the S&P 500 hitting another all-time record and the Dow Jones Industrial Average closing above 17,000 for the first time ever. The advance was broad-based, with most industries seeing positive benefits from the rosy picture of the U.S. economy going forward. Yet a few stocks got left out of the parade higher today, with NQ Mobile (NYSE:NQ), Synnex (NYSE:SNX), and Weibo (NASDAQ:WB) among the worst performers in the market on a holiday-shortened session.


NQ Mobile plunged 32% after the Chinese provider of mobile-Internet services announced news on multiple fronts that gave investors pause. Most troubling was an update on its 2013 annual audit, in which NQ Mobile revealed that independent auditor PricewaterhouseCoopers Zhong Tian said that it will need to do more work and expand the scope of the audit. Surprisingly, NQ Mobile took the PwC statement as a request rather than a necessity, making some worry that the company might actually choose not to have the auditor continue its work. Meanwhile, the chair of the company's audit committee resigned effective Sunday, with NQ Mobile naming two new independent directors to the board and to the audit committee. NQ Mobile still hasn't filed its annual report after multiple delays; until it does, it's hard for investors to have any confidence in the company's future prospects.

Synnex fell 5% after reporting its latest quarterly results last night. The business-services outsourcing company did far better in the second quarter than most investors had expected, topping adjusted earnings-per-share estimates by more than 10% and bringing in over $250 million more in sales than shareholders were looking for. But bearish investors instead focused on Synnex's future guidance, in which it said third-quarter earnings would be 2% to 5% lower than expected even though revenue should hold up reasonably well. Despite the disappointment, several analysts remained confident about Synnex's prospects, especially as additional potential clients seek to cut costs and make their operations more efficient through outsourcing.

Weibo dropped 4% as the Chinese microblogging company dealt with reports of censorship. Reports of blockages of a number of online services in China centered on allegations that the government is deliberately restricting access in light of protests in Hong Kong supporting a more democratic system in the emerging-market nation. Some Weibo users reported having their accounts deleted or blocked, raising questions about the compatibility of the authoritarian government and the rise of social media. Weibo faces the impossible task of providing the service users want while also avoiding the wrath of the Chinese government, and the realization of that fact had shareholders less enthusiastic about the company's long-term prospects.

You can't afford to miss this
"Made in China" -- an all too familiar phrase. But not for much longer: There's a radical new technology out there, one that's already being employed by the U.S. Air Force, BMW and even Nike. Respected publications like The Economist have compared this disruptive invention to the steam engine and the printing press; Business Insider calls it "the next trillion dollar industry." Watch The Motley Fool's shocking video presentation to learn about the next great wave of technological innovation, one that will bring an end to "Made In China" for good. Click here!

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

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