Facebook Mobile Wins Big While Boeing Fails to Impress

The four things you need to know for today's market.

Jul 24, 2014 at 9:06AM

The S&P 500 inched up to a fresh record Wednesday, while the Dow (DJINDICES:^DJI) dipped 27 points on some major mixed earnings reports.

1. Facebook hits all-time high after earnings
Step aside if you've been doubting Facebook (NASDAQ:FB) founder Mark Zuckerberg lately. Facebook's second-quarter revenue rose 61% from last year to $2.91 billion, sending the stock to an all-time high above $71 per share in after-hours trading.

Why are investors giddy like high-schoolers whose parents just gave them permission to join Facebook? Because of mobile. Facebook's mobile users have grown by 40% from last year, resulting in mobile ad revenue rising 67% over that period. That makes Facebook second behind Google for mobile ad dollars, with 22% of the market share.

The takeaway is that even your mom knows the world is going to smartphones over desktops -- and although Facebook stock struggled after its failed IPO on worries it wouldn't figure out mobile ads, investors now like what they're seeing. Next, Wall Street thinks Facebook's move will be a "Buy" button that lets you buy your buddy's cheap sunglasses directly from your newsfeed.

2. Boeing profits soar, but stock doesn't
We promise you we won't use any more cliché take-off/landing analogies to describe the second-quarter performance of aircraft-maker Boeing (NYSE:BA). The good news is that Boeing profits popped 52% from last year as revenue rose 1% to just over $22 billion last quarter thanks to big demand for commercial jets.

So why'd the stock fall 2.4% Wednesday? One big military contract problem. Boeing's earnings report surprised investors with news that wiring problems on some KC-460 tankers (aka "Pegasus") that it's building for the Air Force cost the company $425 million. Too bad they can't just send in Bob Villa or your impressively handy roommate "Dave."

The takeaway is that Boeing stock has been turbulent recently. Boeing shareholders are hoping that the 7% jump in commercial airline orders can compensate for the 5% decline in defense revenues.

3. PepsiCo's poor soda sales saved by snacks
Pepsi's got munchies, and Coke doesn't. Westchester N.Y.-based PepsiCo (NYSE:PEP) reported second-quarter earnings that beat estimates thanks to Fritos, Tostitos, and Ruffles (the good stuff). North American soda sales were down (same for Coca-Cola), but the company's snack foods were a hit, especially in Latin America.

The takeaway is that Americans are reducing soda consumption. This could have been a game-ender for Britney Spears' former top endorsement giver, but its diverse non-soda offerings like Gatorade and chips are growing and rescuing the company.

As originally published on MarketSnacks.com

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MarketSnacks has no position in any stocks mentioned. The Motley Fool recommends Facebook and PepsiCo. The Motley Fool owns shares of Facebook and PepsiCo. 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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