Why LogMeIn, Inc. Stock Jumped Today

Is LogMeIn's pop meaningful? Or just another movement?

Jul 25, 2014 at 7:29PM

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of LogMeIn, (NASDAQ:LOGM) jumped more than 11% early Friday, then settled to close up more than 4% after the cloud-based collaboration company reported solid second-quarter results and raised its full-year guidance.

So what: Quarterly revenue rose 35% year over year, to $55 million, which translated to adjusted net income, which more than doubled to $7.3 million, or $0.29 per diluted share. Both figures exceeded the high-end of LogMeIn's own guidance, and also came out ahead of analysts' expectations for second-quarter earnings of $0.24 per share on sales of $52.5 million.

As a result, LogMeIn now expects full-year 2014 revenue of $216.5 million to $218.0 million, with adjusted net income per diluted share of $1.05 to $1.12. By comparison, Wall Street was only modeling adjusted earnings of $1.00 per share on sales of $210.9 million.

Now what: LogMeIn CEO Michael Simon elaborated: "Our key growth drivers continue to perform very well, with join.me once again delivering 100-plus percent year-over-year revenue growth, strong ongoing contribution from our SMB IT customer base and early, encouraging customer demand and traction in the Internet of Things with Xively."

Given the company's outsized growth, I think shares look reasonably valued, even trading around 5.5 times trailing 12-month sales, and 35 times next year's expected earnings. But at these levels, I'm just not intrigued enough to want to dive in today. For now, I'm perfectly content continuing to watch LogMeIn from the sidelines.

Risk free for 30 days: The Motley Fool's flagship service
Tom and David Gardner founded The Motley Fool more than 20 years ago with the goal of helping the world invest... better. Their flagship service, Stock Advisor, has helped thousands of investors take control of their financial lives and beat the market. Click here to sign up today.

Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information