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What Is a Supernova?

By Motley Fool Staff – Feb 2, 2016 at 4:32PM

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That's one big spiffy-pop.

A supernova is a spiffy-pop event that occurs for a stock that is widely held by our Motley Fool membership.

An example occurred on April 22, 2010, when Netflix spiffy-popped for Motley Fool Stock Advisor. By dint of having been a multi-re-recommended stock by both David and Tom Gardner, and occurring so frequently as a Best Buy Now and as a Core holding on the service, Netflix had risen in popularity to become the second most-owned stock among the Motley Fool Stock Advisor membership, and the fifth most-owned stock in all of Fooldom.

So when Netflix spiffy-popped, it earned the distinction of supernova.

By "widely held," we generally mean a stock that is among our membership's top 20 holdings, in aggregate.

In addition to creating broad and wild amounts of wealth across our far-flung membership, supernovas generate great excitement at Fool HQ. There's really no greater investment happiness a Motley Fool stockpicker can ever feel than generating supernovas for our Fools.

One week to the day later, on April 29, 2010, Baidu became a supernova for Motley Fool Rule Breakers. It rose $88.49 that day, exceeding its Nov. 2006 cost of $83.37. Baidu was picked by Rick Munarriz (TMFBreakerRick).

Netflix then went supernova a second time in 2010. On Oct. 21, 2010, Netflix shares rose $19.54 to an all-time closing high of $172.69.

Netflix then went supernova a third time in 2010. On Nov. 22, 2010, Netflix shares rose $15.28 to another all-time closing high of $188.32.

After reporting Q4 2010 results, Netflix went supernova a fourth time on Jan. 27, 2011. Shares rose $27.84 to an all-time closing high of $210.87. This one was remarkable, because it was also a spiffy-pop for all five active recommendations for Motley Fool Stock Advisor at the time.

This article is part of The Motley Fool's Knowledge Center, which was created based on the collected wisdom of a fantastic community of investors. We'd love to hear your questions, thoughts, and opinions on the Knowledge Center in general or this page in particular. Your input will help us help the world invest, better! Email us at [email protected]. Thanks -- and Fool on!

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