Why Apple, Cirrus Logic, and InvenSense Rose Today

The stock market fell back on Monday from its record highs set last week, but these three stocks managed to buck the trend and end higher. Find out why.

Jul 7, 2014 at 6:33PM

The stock market gave up ground on Monday, falling back from record levels set during the holiday-shortened week before the July 4 market holiday. Weighing on investors were continued worries about the ability of the market to keep pressing higher after more than five years of bull-market gains, along with uncertainty about the course of future Federal Reserve policy that could bring the stock market's advances to a premature end. There were relatively few extremely strong performers Monday, but Apple (NASDAQ:AAPL), Cirrus Logic (NASDAQ:CRUS), and InvenSense (NYSE:INVN) were among those that managed to post gains.

Apple Bigger
Source: Apple.

Apple gained 2% as analysts argued that the tech giant's sales for June showed strength. By looking at data from the companies that supply Apple with the components and services it needs to produce its smartphones, tablets, and other mobile devices, analysts judge whether they believe Apple is seeing increased sales of its products. With most investors who follow the stock looking forward to the release of the much-anticipated iPhone 6 and also hoping for news on a possible wearable device such as an iWatch, it would be very good news for Apple if consumers aren't holding back from buying current products like the iPhone 5s rather than waiting for updated models months down the road. Apple has a lot at stake with its next round of updated and new devices, but shareholders remain optimistic that Apple can find success despite doubts among skeptics.

Cirrus Logic gained 5%. The component maker's fortunes have long been tied to Apple's, and so today's performance appears to be a fairly common riding on Apple's coattails. Even with today's gains, many investors remain worried that the news for Cirrus Logic going forward might not be nearly as favorable as it has been in the past, with some speculating that the producer of audio-related equipment for Apple devices might not find a place for its power-amplifier components in the new iPhone 6. Cirrus already suffered the loss of a spot for its audio amplifier in the iPad Air, and so the stock trades at relatively modest earnings multiples. If Cirrus picks up an iPhone 6 win, it could easily lift shares even further.

Similarly, InvenSense rose 6%, rising to a new yearly high as investors believe that the maker of integrated gyroscopes, accelerometers, and pressure sensors could also see increasing market share with the release of the iPhone 6 as well as any wearable technology. InvenSense has been a first-mover in wearables, and Apple is far from the only company interested in InvenSense technology as the Internet of Things also starts to ramp up. InvenSense isn't nearly as strong a value play as Cirrus Logic is, but many believe that the stock's upside potential is far greater as well.

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!

Dan Caplinger owns shares of Apple. The Motley Fool recommends Apple and InvenSense and owns shares of Apple, Cirrus Logic, and InvenSense. 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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