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Why InvenSense, Twilio, and Navistar International Jumped Today

By Dan Caplinger - Dec 21, 2016 at 5:09PM

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Even in a sluggish market, these stocks climbed. Find out why.

The stock market stalled out on Wednesday, with many investors focusing on the failure of the Dow Jones Industrials to cross the much-watched 20,000 mark. Losses among major market benchmarks were quite modest at a quarter percent or less, and the level of intraday volatility was minimal, pointing to the tug of war that traders seem to be engaging in as the Dow hovers near the historical milestone. Yet even though markets were ambivalent, many individual stocks posted gains, and InvenSense (INVN), Twilio (TWLO 1.62%), and Navistar International (NAV) were among the best performers on the day. Below, we'll look more closely at these stocks to tell you why they did so well.

Image source: InvenSense.

InvenSense gets the buyout investors were looking for

InvenSense finished up 18% after Japanese tech giant TDK (TTDKY -4.49%) followed through with an expected buyout offer for the sensor-making specialist. The terms of the $1.3 billion deal will involve TDK paying $13 per share in cash for InvenSense stock. That's $1 per share higher than what rumors earlier this month had suggested might be likely, but TDK clearly believes that the purchase is a good solution to help it build up its exposure to sensor applications in the automotive, Internet of Things, and virtual reality spaces, as well as in the information and communications technology arena generally. The parties expect the deal to close in the third calendar quarter of 2017, and InvenSense CEO Behrooz Abdi noted that the two companies' "strategic goals are aligned, and we are confident that together with TDK, we will accelerate our roadmap to provide next-generation sensor technologies in key fields for the world's most innovative companies."

Twilio benefits from its Amazon partnership

Twilio climbed 16% in the wake of reports that the cloud-based software company will work more closely with (AMZN 3.15%) and its Amazon Web Services unit. A Benzinga report cited sources familiar with the matter that Twilio and Amazon will collaborate in order to come up with a voice message service for clients. The two companies have been close in the past, with Amazon having invested in Twilio and with Twilio using Amazon in connection with its business offerings. Given Amazon's reach and reputation for innovation, Twilio's collaboration could continue to pay dividends both now and in the future.

Navistar keeps climbing after earnings

Finally, Navistar International gained 6%. The truck maker added to its share-price increase from Monday, even though it had reported weak fiscal fourth-quarter results that included a worse loss than expected and a steep 17% drop in revenue. Truck sales were down a fifth from the year-ago period, but investors seemed heartened by cost-cutting measures and its deepening relationship with Volkswagen. Also, recent upticks in expectations for economic activity both in the U.S. and across the globe could have positive impacts on the truck manufacturer. Some will be skeptical of Navistar's rally, which has seen the stock quadruple since early this year, but the company has the potential to thrive if more favorable conditions come soon in its industry.

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Stocks Mentioned

InvenSense, Inc. Stock Quote
InvenSense, Inc.
INVN, Inc. Stock Quote, Inc.
$109.56 (3.15%) $3.35
Navistar International Corporation Stock Quote
Navistar International Corporation
TDK Corporation Stock Quote
TDK Corporation
$29.76 (-4.49%) $-1.40
Twilio Inc. Stock Quote
Twilio Inc.
$85.17 (1.62%) $1.36

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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