NQ Mobile Tanks, Apple Tries to Ditch Nuance, and Intel's Modem Momentum Begins to Build

NQ Mobile, Apple, and Intel proved very interesting last week.

Jul 5, 2014 at 9:00AM

The Dow Jones Industrial Average (DJINDICES:^DJI) powered through the coveted 17,000 mark in this week's shortened trading session, rising 217 points. In the world of tech stocks, NQ Mobile (NYSE:NQ) plunged, Apple (NASDAQ:AAPL) is allegedly building its own voice recognition engine, and Intel's (NASDAQ:INTC) cellular modems seem to be gaining momentum.

NQ Mobile plunges as it faces expanded audit
NQ Mobile has been a controversial stock ever since last October, when Muddy Waters Research made public allegations of fraudulent conduct at NQ. The shares lost over half of their value on the release of the Muddy Waters report.

As NQ posted strong earnings results, and as the special committee formed to investigate the fraud allegations against NQ found no evidence that Muddy Waters' allegations were true, the shares nearly recovered to pre-allegation levels by March.

However, the situation recently took a turn for the worse, as NQ failed to file its 2013 annual report on schedule. Further, in NQ's Thursday press release, it was noted that PricewaterhouseCoopers, NQ's independent auditor, made it clear to the company's board of directors and audit committee that "it would need to perform additional procedures and expand the scope of its 2013 audit work."

The shares closed down 32.25% in Thursday's trading session.

Apple building its own voice recognition engine?
Shares of Apple were up 2.23% during the shortened trading week. Though unlikely related to the share price gain, Wired reported that Apple is in the process of building a voice recognition software team. This would mean a move away from Nuance (NASDAQ:NUAN) as the technology provider for Apple's widely known voice recognition feature known as Siri.

This is typical Apple, which will take a very practical approach to bringing new features to market. If it can bring the technology out initially through in-house efforts, then it will do so. If not, then it will integrate other companies' technologies. If that technology is critical enough to differentiating the iPhone and iPad over the longer term, Apple will eventually move it in-house, as it did with maps and processor design.

Keep an eye out over the next few years on what Apple can bring to the table with its own in-house voice recognition solution. 

Intel's modem efforts continue to march on
Intel, the world's largest chipmaker, has been racing to catch up in supporting the latest wireless standards with its cellular modems. It looks as though these efforts have begun to bear fruit, as Samsung has now adopted Intel's first LTE modem, dubbed XMM 7160, in three publicly announced smartphones:

  • Galaxy S5 mini (international edition)
  • Galaxy K Zoom
  • Galaxy Note 3 Neo

Looking ahead, the company signaled at its analyst day last November that the XMM 7160's successor, known as the XMM 7260, is seeing strong interest from customers because of its robust feature-set.

If Intel's modem efforts can eventually consistently keep pace with Qualcomm's, then Intel's mobile future could be quite bright.

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 ARM Holdings and Intel. The Motley Fool recommends Apple, Intel, and Nuance Communications and owns shares of Apple, Intel, Nuance Communications, and Qualcomm. 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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