Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

These Two Tech Stocks are Surging

By Sam Mattera - Mar 5, 2014 at 11:30AM

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

Shares of Facebook, Gogo, and Microsoft are active early on Wednesday.

The Dow Jones Industrial Average ( ^DJI -0.17% ) had shed 41 points as of 11:30 a.m. EST, giving back a portion of Tuesday's gain. Dow Jones component Microsoft ( MSFT -1.97% ) was one of the index's worst-performing stocks, while shares of Gogo ( GOGO -1.32% ) and Facebook ( FB -1.14% ) posted solid rallies.

ADP data comes in below expectations
Perhaps contributing to the Dow's muted move to the downside, ADP employment data suggested that the U.S. labor market wasn't as healthy as economists had anticipated. ADP nonfarm employment change, a measure of private employment in the nonfarm sector, showed an increase of 139,000 jobs last month -- less than the 160,000 economists had anticipated.

Investors don't appear to be reading too much into the data, and for good reason: it's just one measure of the state of the U.S. labor market, and a minor one at that. The much more significant Labor Department nonfarm payroll report is set to be released on Friday, and should provide a much better view of the job market.

Ballmer's battle with the board
Microsoft's was down 1.1% in late-morning trading. There were no significant releases -- earnings, analyst ratings, or new products -- affecting the company, but an article in Bloomberg Businessweek shed more light on Microsoft's recent management shakeup.

Recently departed CEO Steve Ballmer reportedly clashed with the company's board of directors in his final months on the job, as board members initially balked at his attempts to transform Microsoft into a hardware company. New CEO Satya Nadella was himself initially reluctant, but later changed his mind. Overall, the report seems to suggest that some Microsoft insiders continue to harbor lingering doubts about the company's new device-focused strategy.

Gogo's management to address analysts
Shares of Gogo, the provider of in-flight Wi-fi, rallied more than 10% early in the session. Later this afternoon, Gogo's management will address analysts at Morgan Stanley's Technology, Media & Telecom Conference.

Investors may be expecting the upcoming comments to provide a catalyst for a move to the upside. At any rate, although a double-digit percentage gain is almost always impressive, it isn't particularly notable for Gogo, which has experienced wild swings since it began trading last year.

Stifel boosts Facebook shares
Facebook shares were also moving to the upside, though with a 3.3% jump that was more measured than Gogo's climb. Investors may have been bidding up Facebook shares in the wake of a price target boost from Stifel Nicolaus.

The firm raised its price target on Facebook from $72 to $82, and reiterated its buy rating. Stifel believes Facebook is continuing to build traction with marketers.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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

Dow Jones Industrial Average (Price Return) Stock Quote
Dow Jones Industrial Average (Price Return)
^DJI
$34,580.08 (-0.17%) $-59.71
Microsoft Corporation Stock Quote
Microsoft Corporation
MSFT
$323.01 (-1.97%) $-6.48
Meta Platforms, Inc. Stock Quote
Meta Platforms, Inc.
FB
$306.84 (-1.14%) $-3.55
Gogo Inc. Stock Quote
Gogo Inc.
GOGO
$12.70 (-1.32%) $0.17
Morgan Stanley Stock Quote
Morgan Stanley
MS
$98.21 (-0.66%) $0.65

*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
624%
 
S&P 500 Returns
141%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/04/2021.

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

Our Most Popular Articles

Premium Investing Services

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