Why TripAdvisor Inc., First Solar, Inc., and Salesforce.com Are Today's 3 Worst Stocks

High-growth names get pummeled on Tuesday ahead of earnings season; international opportunities and threats are in focus

Jul 8, 2014 at 7:38PM

Earnings season kicks off today on Wall Street, and with the stock market near historic highs and the job market in a state of strong recovery, strong corporate earnings can only serve to corroborate the bullish images we're seeing painted about the economy. With so much riding on quarterly earnings, stocks took a dive on Tuesday. TripAdvisor (NASDAQ:TRIP), First Solar (NASDAQ:FSLR), and Salesforce.com (NYSE:CRM) ended as the three worst stocks in the entire S&P 500 Index (SNPINDEX:^GSPC) today. The S&P, for its part, lost 13 points, or 0.7%, to end at 1,963.

Online travel booking company TripAdvisor saw shares tumble 5.6% today as investors moved away from high-flying momentum names, favoring more conservative, yield-bearing assets instead. And while TripAdvisor's growth prospects look promising, the stock is neither cheap -- with a pricetag of 70 times earnings -- nor yield-bearing. Online travel companies have been some of the hottest in the markets in recent years, and TripAdvisor's earned its position as one of the elite, growing annual revenue from $352 million in 2009 to $944 million in 2013.

First Solar, on the other hand, doesn't have the sky-high valuation of TripAdvisor. But it does operate in a nascent and unpredictable industry with no established history, making it far from a sure bet, even at 15 times earnings. First Solar stock lost 4.9% today, not because of any company-specific news, but because the emerging and highly competitive business of solar panel manufacturing didn't suit investors' risk tolerance today. Heavily subsidized Chinese rivals like Yingli Green Energy and others add international hurdles for First Solar as well.

Salesforce Sales Cloud

Salesforce's "Sales Cloud." Image Source: Salesforce

Lastly, cloud enterprise provider Salesforce.com lost 4.3% on Tuesday. Salesforce has grown revenue at an exceptional and consistent pace for the last four years, with sales posting annual gains between 26% and 36% a year consistently throughout that time period. The company's bottom-line performance, however, has been less spectacular, and the company has lost a combined $500 million in its last two fiscal years. Those losses haven't stopped Salesforce from stating its international expansion efforts, however, and it recently announced its intention to expand its operations in Germany specifically. Salesforce is also expanding its service offerings to increasingly include business analytics, an area of potentially exciting growth prospects with the preponderance of big data.

You can't afford to miss this
"Made in China" -- an all too familiar phrase, and one that First Solar hopes consumers don't become accustomed to. But one radical new technology may help eradicate that phrase -- a technology 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!

John Divine has no position in any stocks mentioned. You can follow him on Twitter, @divinebizkid, and on Motley Fool CAPS, @TMFDivine.

The Motley Fool recommends Salesforce.com and TripAdvisor. 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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