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
Longview

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.

Amzn
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.

Arun

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.

Do you know this energy tax "loophole"?
You already know record oil and natural gas production is changing the lives of millions of Americans. But what you probably haven't heard is that the IRS is encouraging investors to support our growing energy renaissance, offering you a tax loophole to invest in some of America's greatest energy companies. Take advantage of this profitable opportunity by grabbing your brand-new special report, "The IRS Is Daring You to Make This Investment Now!," and you'll learn about the simple strategy to take advantage of a little-known IRS rule. Don't miss out on advice that could help you cut taxes for decades to come. Click here to learn more.

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.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

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.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

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. It's also featured on several dozen 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 ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.


Compare Brokers