Why Amazon.com, Aruba Networks, and Westmoreland Coal Soared Today

The stock market again recovered from early losses, this time to finish up on the day. Find out more about what made these three stocks soar.

Jul 11, 2014 at 7:05PM

On Friday, the stock market largely repeated its performance from the previous day, albeit without quite as much fanfare. Like yesterday, stocks initially posted losses, with concerns about earnings reports weighing on the mood of investors. Yet, by the end of the day, the markets had recovered their upward momentum, and most major stock market benchmarks finished up on the day. Shareholders in Amazon.com (NASDAQ:AMZN), Aruba Networks (NASDAQ:ARUN), and Westmoreland Coal (NASDAQ:WLB) had even more to celebrate, with solid gains in their share prices today.

Source: Amazon.com.

Amazon climbed almost 6% as the online-retail giant had mixed news. On the positive side, Amazon expanded its menu of cloud-computing services for its Amazon Web Services unit, reminding investors that the company is a major play on the cloud, as well as its namesake retail business. Amazon also got attention today for seeking permission from the Federal Aviation Administration to test-fly delivery drones, which it hopes to use to enable same-day delivery in key high-volume markets to further improve its customer service. Yet, Amazon also came under fire as the Federal Trade Commission said that the company had allowed children to make unauthorized charges from within apps while collecting from parents' accounts. The FTC will seek refunds of the charges, and also wants to stop Amazon from similar practices going forward.


Source: Aruba Networks.

Aruba Networks gained 7% after the Federal Communications Commission approved a $2 billion program to provide grants for schools to help pay for Wi-Fi networking infrastructure. Investors hope that Aruba will get its share of revenue resulting from increased sales of Wi-Fi-related products to meet this increase in demand. Moreover, some believe that the FCC's decision doesn't go nearly far enough toward helping U.S. schools improve their network access, and any future boost in funding for similar programs going forward could help Aruba's business to an even greater extent.

Westmoreland Coal rose 6% after the company successfully made a secondary offering of stock. Westmoreland raised about $52 million by selling roughly 1.46 million shares at $35.50 per share, which was about 4% below the stock's closing price Thursday. Usually, secondary share offerings result in share-price reductions, especially when offering prices are below the market price. But investors clearly believe that the capital-raise is a move in the right direction toward helping Westmoreland reduce its debt. With the industry still struggling from relatively low prices for coal, stabilizing its balance sheet is positive for Westmoreland, at least for the immediate future.

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Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Amazon.com. The Motley Fool owns shares of Amazon.com. 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.

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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