Why Apple, King Digital, and BlackBerry Shares are Rising

Shares of Apple, BlackBerry, and King Digital are experiencing notable moves on Monday.

Jul 7, 2014 at 11:30AM

The Dow Jones Industrial Average (DJINDICES:^DJI) was down more than 66 points as of 11:30 a.m. EDT. However, tech stocks including Apple (NASDAQ:AAPL), BlackBerry (NASDAQ:BBRY), and King Digital (NYSE:KING) were defying the market's slide.

Apple rises after upgrade
Shares of Apple rose more than 1.3% on Monday after Pacific Crest raised its price target on the stock to $100. Pacfic Crest's upgrade was largely based on an optimistic outlook for the iPhone 6 -- analysts believe that Apple's next iPhone will generate strong sales when it debuts, likely in the third quarter.

Apple investors may also have an iWatch to look forward to. Late last week, CNBC reported that Apple had hired TAG Heuer's sales director, presumably to help sell its forthcoming iWatch. TAG Heuer is a luxury Swiss watch maker, and bringing on one of the company's sales directors would make sense if Apple intends to sell a smartwatch in the near future.

Both news items are clearly positive for Apple shareholders, at least in the near term. Still, expectations for the tech giant appear to be quite high going into the fall. To maintain its current share price, Apple may have to make good on expectations for record-setting iPhone 6 and iWatch debuts.


Source: Wikimedia Commons.

BlackBerry benefits from design award wins
BlackBerry shares rose more than 5% late on Monday morning following an announcement that the company had won three Red Dot Awards. BlackBerry's Q10, Q5, and Z30 smartphones won on the basis of their designs.

BlackBerry shareholders may be hoping that the quality design translates into better sales, as the company's handsets continue to struggle in the face of better competition. Last quarter, for example, BlackBerry shipped just 1.6 million handsets -- down from 6.8 million in the prior year.

Those Red Dot Awards may be welcome, but don't seem likely to have a noticeable effect on sales. Investors should note that all three phones have been available for several months. Despite the relative strength of their designs, few consumers have been purchasing them.

BlackBerry's recent rally, including today's rise, may be the byproduct of a short squeeze: With roughly 20% of its outstanding shares sold short, BlackBerry shares may be prone to significant gains on any positive news. 

King Digital rises on recommendation
Shares of King Digital, known primarily as the maker of Candy Crush Saga, rose 3.7% in Monday's session after Piper Jaffray raised its rating on the stock to overweight from neutral. Piper Jaffray believes King Digital shares could be worth as much as $28 -- a more than 20% premium from current levels.

Piper Jaffray believes the company's upcoming earnings report will be broadly in line with what Wall Street analysts expect, and that its results in the second half of the year will be driven by new game titles.

Although King Digital is often derided as a one-trick pony, dependent on Candy Crush Saga for the vast majority of revenue and earnings, the company has seen some recent success with other games. King Digital's Bubble Witch 2 Saga, for instance, is among the top-ranked free apps on the iTunes app store, and is currently more popular than Candy Crush Saga.

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

Editor's note: A previous version of this article misstated BlackBerry Limited's short interest. The Motley Fool regrets the error.

Sam Mattera has no position in any stocks mentioned. The Motley Fool recommends Apple, Google (A shares), and Google (C shares). The Motley Fool owns shares of Apple, Google (A shares), and Google (C shares). 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.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

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.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

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. The show is also heard weekly on dozens of 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. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.


Compare Brokers