Why Facebook, Nokia, and Logitech are Surging

Shares of Facebook, Nokia, and Logitech were among the best-performing stocks on Thursday.

Jul 24, 2014 at 11:30AM

The Dow Jones Industrial Average (DJINDICES:^DJI) had risen more than 21 points as of 11:30 a.m. EDT. A few tech stocks were strongly outperforming the market, including Facebook (NASDAQ:FB), Nokia (NYSE:NOK), and Logitech International (NASDAQ:LOGI).

Facebook hits all-time high
Shares of Facebook rallied more than 6.7% on Thursday, at one point hitting a new all-time high, following a stronger than expected earnings report. Facebook's second-quarter revenue of $2.91 billion was a bit better than the $2.81 billion that analysts had anticipated, while its earnings per share of $0.42 was far better than the $0.32 estimate.

Facebook continues to experience user growth: In total, the social medial giant added 41 million users last quarter. At the same time, Facebook's existing users appear to be more engaged, with the monthly active user base rising 14% to encompass 63% of Facebook's total user base.

The company continues to capitalize on the shift to mobile computing. Facebook's mobile ad revenue grew 151% on an annual basis, and mobile accounted for 62% of ad revenue in the quarter.

Facebook appears to be firing on all cylinders, continuing to add and monetize users even as they move away from the desktop. With a price-to-earnings ratio near 100, Facebook is aggressively valued, but the problems many believed would plague the company have not materialized.


Source: Wikimedia Commons.

Nokia rallies after earnings report
After selling its handset business to Microsoft, Nokia is no longer a phone company. Today it's a supplier of mobile network components -- and one that appears to be doing quite well.

Nokia shares rose more than 7% early on Thursday after the company reported second-quarter earnings. Nokia reported diluted earnings per share of $0.08 on sales of $4 billion -- both figures stronger than consensus estimates.

Nokia's handset business had been losing the company money for years, so it clearly benefited from selling the operation to Microsoft. In addition to returning Nokia to profitability, it's added billions to the company's coffers.

Logitech earnings come in better than anticipated
Logitech shares were also up more than 15% on Thursday after a strong earnings report. In the first quarter, the PC and mobile accessory supplier's earnings per share came in at $0.13, much better than $0.04 estimate. Likewise, revenue of $483.2 million exceeded the $476.9 million estimate.

Logitech's results appear to have been influenced by the ongoing corporate PC refresh cycle: the company's popular PC mice and keyboards saw 8% revenue growth in the first quarter. The growth of PC gaming also gave Logitech a boost, with its gamer-focused mice, keyboards, headsets, and controllers experiencing a 17% sales gain. Interestingly, Logitech's mobile accessories division, which had been a strongly growing part of the business, posted a fairly significant decline, with sales of tablet keyboards dropping 15%.

Nevertheless, Logitech appears to be managing its business appropriately. So long as demand remains strong for traditional PCs, Logitech should benefit.

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!

Sam Mattera has no position in any stocks mentioned. The Motley Fool recommends Apple, Facebook, and Logitech International SA (USA). The Motley Fool owns shares of Apple and Facebook. 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.

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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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