Please ensure Javascript is enabled for purposes of website accessibility

Why NVIDIA, SINA, and Tegna Jumped Today

By Steve Symington - Aug 19, 2019 at 5:02PM

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

See why these three stocks stood out even as the broader market climbed.

Monday began on a positive note for investors after Treasury yields rebounded from last week's historic lows. U.S. regulators also agreed to extend a license allowing China's Huawei to work with U.S. customers for another 90 days. Together, the developments helped ease concerns for both the state of international trade and a potential global economic slowdown.

But even as major benchmarks rallied, several individual stocks saw sharply higher gains. Here's why NVIDIA (NVDA 5.29%), SINA (SINA), and Tegna (TGNA 1.33%) did so well.

Seeing Minecraft in a whole new light

Shares of NVIDIA jumped 7% thanks to a combination of the aforementioned Huawei license extension -- which broadly benefits U.S.-based chip companies -- and a new agreement with Microsoft to add its RTX ray tracing technology to the PC version of the software giant's blockbuster Minecraft game.

Minecraft with NVIDIA's ray tracing enabled.

Image source: NVIDIA.

The Minecraft agreement is unusual considering the wildly popular video game has won praise for its simplistic design. But Minecraft's visual revamp -- which adds ultra-realistic effects like direct lighting from the sun, detailed hard and soft shadows, and transparent materials (water, ice, and stained glass) with reflection and light scattering -- offers massive incremental publicity for NVIDIA's industry-leading graphics technology.

"Minecraft will expose ray tracing to millions of gamers of all ages and backgrounds that may not play more hardcore video games," explained NVIDIA head of GeForce marketing Matt Wuebbling. "The world's best-selling video game adding ray tracing on PC illustrates the momentum that ray tracing has built in the gaming ecosystem."

SINA's stellar quarter

Shares of Sina soared 15.4% after the Chinese internet media company announced better-than-expected second-quarter 2019 results.

Adjusted (non-GAAP) quarterly revenue declined 1% year over year (but increased 5% at constant currencies) to $530.4 million -- well above estimates for revenue closer to $510 million. That translated into adjusted net income of $54 million, or $0.76 per share, down from $0.89 per share in the year-ago period but crushing estimates for earnings of $0.47 per share.

Sina's top-line results were bolstered by a 20% increase in adjusted non-advertising revenue to $96.8 million, which nearly offset a 5% decline in advertising sales to $433.6 million. 

Tegna is an acquisition target

Shares of Tegna popped 5.7% after The Wall Street Journal reported that the broadcast, digital media, and marketing company has rebuffed repeated acquisition efforts this year by private-equity firm Apollo Global Management.

More specifically, WSJ says Apollo sent a letter to Tegna's board in February expressing its interest in striking a deal, and has remained in contact with the company even as Tegna declined to move forward with a purchase.

Any such acquisition would need to come at a hefty premium to appease Tegna shareholders -- a task made more difficult for Apollo with Tegna stock already up more than 40% so far in 2019. But The Wall Street Journal's sources also noted Apollo may pursue other options, including a merger or selling its own portfolio of TV stations to Tegna.

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

SINA Corporation Stock Quote
SINA Corporation
SINA
NVIDIA Corporation Stock Quote
NVIDIA Corporation
NVDA
$181.77 (5.29%) $9.13
TEGNA Inc. Stock Quote
TEGNA Inc.
TGNA
$21.33 (1.33%) $0.28

*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 service.

Stock Advisor Returns
338%
 
S&P 500 Returns
119%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/17/2022.

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.