Please ensure Javascript is enabled for purposes of website accessibility

Why Ferrari, Nokia, and Pandora Media Jumped Today

By Dan Caplinger - Feb 1, 2018 at 4:32PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Find out what drove these stocks higher.

Thursday was another up and down day for the stock market. Major market benchmarks spent time on both sides of the unchanged mark as investors tried to figure out whether a long-awaited correction is finally imminent or whether the buy-the-dips strategy that has worked so well for years will once again prevail. Yet even amid turbulence in the broader indexes, some stocks managed to post solid gains. Ferrari (RACE 2.43%), Nokia (NOK 1.08%), and Pandora Media (P) 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.

Ferrari races ahead

Shares of Ferrari picked up 7% after the automaker reported strong results for the full 2017 fiscal year. The company said it shipped almost 8,400 vehicles, up 5% from year-earlier levels, and net revenue jumped 10% in local currency terms, helping to send adjusted net income higher by more than a quarter. Ferrari saw a massive uptick in demand for its 12-cylinder vehicle models, including the GTC4Lusso, 812 Superfast, and LaFerrari Aperta. As the economy keeps rebounding worldwide, Ferrari can expect more high-end interest from luxury buyers looking to satisfy pent-up demand.

Red Ferrari with vertically-opening side doors open.

Image source: Ferrari.

Nokia connects

Nokia stock jumped 12% in the wake of favorable results in the company's fourth-quarter financial report. Revenue was relatively flat from year-earlier results, but an unexpected rise in adjusted earnings made investors happy. Strong results from the Nokia Technologies intellectual property segment stemmed from unusual gains from the settlement of a dispute with one licensee and a new deal with another. Once 5G networks become the norm, Nokia hopes to benefit from another product-cycle related surge in demand, and that could help lift shares even further in the future.

Pandora makes some cuts

Finally, shares of Pandora Media climbed 7%. The streaming music service provider announced that it would cut about 5% of its workforce as part of a broader initiative to contain cost increases in order to be more competitive in its increasingly crowded industry. The organizational restructuring should simplify Pandora's operations and save about $45 million on an annual basis, which Pandora intends to reinvest toward growth in ad tech, non-music content, device integration, and marketing technology efforts. Pandora will also expand its presence in Atlanta at the expense of scaling back in Oakland, saying that Atlanta's costs are less expensive. Some believe the move could set the stage for a buyout of Pandora, but regardless, shareholders seem pleased with the decision.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Nokia Corporation Stock Quote
Nokia Corporation
$4.66 (1.08%) $0.05
Pandora Media, Inc. Stock Quote
Pandora Media, Inc.
Ferrari N.V. Stock Quote
Ferrari N.V.
$187.94 (2.43%) $4.46

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

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/02/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.