These 3 tech stocks beat the market, July 13 – July 17
11.6%, thanks to a
big Tuesday surge.
The big move:
On Tuesday, analyst firm Canaccord Genuity reaffirmed its "buy"
rating on Ambarella.
Analyst Matthew Ramsay also increased his price target to $120, a $5
bump from his previous estimate.
In Ramsey's view, Ambarella's unique portfolio of
video processing tools "positions the company for
strong sales and earnings growth."
Ambarella shares rose 8.4% on that report alone.
The stock opened at $100.49 on Monday, and closed
Friday's session at $111.12.
What's the story?
High-quality video tools are kind of a big deal these days.
Ambarella is the preferred provider of image
processing chips for fellow market darling GoPro.
Investors clearly prefer the components provider
over the camera builder. In the last 52 weeks,
GoPro stock is up a market-beating 40%...
But Ambarella shares gained 276%. That's nearly a
four-bagger in 12 months.
Canaccord believes that Ambarella will deliver strong growth, at
least through fiscal year 2017.
"Upside is likely to our Street-high revenue estimates," Ramsey
Keep an eye on Ambarella's growth trajectory. Sales are currently
growing 74% year-over-year while earnings more than tripled --
and the stock is priced accordingly.
Ambarella shares trade at 57 times trailing earnings and 30 times
Be careful out there!
Google was quietly having a good
week, up more than 7% on the eve of
its second-quarter report.
Then this happened:
Google added more than $170 billion to its already
massive market cap this week.
Opening at $532.88 on Monday, Google C shares
closed at $672.93 on Friday.
First, newly appointed CFO Ruth Porat showed off
her Morgan Stanley pedigree,
promising tighter cost controls. Shares rose 7%.
Then, the company crushed Street targets, sweeping
aside long-held worries about soft profitability.
A new attitude
It's fair to say that Google is growing up. Acting
its age. Being responsible for its huge assets.
Ruth Porat is a breath of fiscally responsible air
in a company formerly famous for throwing
spaghetti at the wall to see what sticks.
Meanwhile, the much-maligned YouTube buyout
is starting to pay serious dividends. YouTube ads
are outgrowing other Google ad platforms at the
Finally, Micron Technology
jumped 12% on Tuesday and held
on to those gains.
Nice jump! Is it real?
Micron's sudden jump rested on rumors that a Chinese firm might
buy the memory chip expert.
Micron shares opened at $17.83 on Monday. Boosted by the buyout
chatter, it closed Friday at $20.12.
The rumored bid from tech conglomerate Tsinghua Unigroup works
out to $21 per share -- still 5% above Micron's current share prices.
Buyouts are generally good news, so Micron shareholders should
celebrate this offer, right?
Tsinghua's reported offer is a low-ball bid. It's opportunistic to the
Micron shares soared as high as $36.59 in December. Just 7 months
later, Tsinghua swoops in with a offer that's 43% lower.
If the Chinese company can jump lots of legal and regulatory hurdles,
Micron shareholders are still likely to reject this deal.
In short, don't bet on it.
If and when Micron recovers from this year's drastic price slide,
it will be because it found more ways to make money outside
the traditional PC market.
China doesn't even belong in this discussion.
A little-known tech company responsible for
finally putting an end to credit cards could hand
its investors life-changing profits. And a
revealing investor alert from The Motley Fool
has the full story!