Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

3 Tech Stocks That Soared This Week


Published on

The stock market just finished a decent week. These three tech stocks fared even better. See how Ambarella, Google, and Micron crushed the market in the middle of July.

Published in: Business
  • Be the first to comment

3 Tech Stocks That Soared This Week

  1. 1. 3 Tech Stocks That Soared Last Week
  2. 2. These 3 tech stocks beat the market, July 13 – July 17
  3. 3. Ambarella gained 11.6%, thanks to a big Tuesday surge.
  4. 4. 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.
  5. 5. 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.
  6. 6. What's next? Canaccord believes that Ambarella will deliver strong growth, at least through fiscal year 2017. "Upside is likely to our Street-high revenue estimates," Ramsey said. 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 forward projections. Be careful out there!
  7. 7. Google was quietly having a good week, up more than 7% on the eve of its second-quarter report. Then this happened:
  8. 8. What 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.
  9. 9. 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 moment.
  10. 10. Finally, Micron Technology jumped 12% on Tuesday and held on to those gains.
  11. 11. 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? Well, nope.
  12. 12. What's wrong? Tsinghua's reported offer is a low-ball bid. It's opportunistic to the core. 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.
  13. 13. 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!