This Week's 5 Smartest Stock Moves
If you're feeling good about the market, you're not alone. Take my hand as we go over some of this week's more uplifting headlines.
1. New highs -- and high targets -- for Sirius XM Radio
Sirius XM Radio (NAS: SIRI) raced to four-year highs this week after Bank of America Merrill Lynch analyst Jessica Reif Cohen initiated coverage of the media giant with a buy rating. Perhaps more importantly, she's raising the bar with a $3.75 price target.
Encouraged by the satellite radio provider's outlook for healthy cash flows in the coming years, Cohen argues that "Sirius XM's best days are ahead." It may seem like a brazen thing to say for a stock that has popped 50-fold since bottoming out three years ago, but Sirius XM is in surprisingly good shape here.
The optimism may be contagious. Citigroup analyst Jason Bazinet boosted his price target on Sirius XM from $2.50 to $3 this week.
2. Hungry Hungry Zynga
Zynga's (NAS: ZNGA) next gaming frontier? Board games!
We're talking about Hungry Hungry Hippos with FarmVille cows. We're talking about Monopoly with CityVille properties.
However, then we get to the awkward reboots. Words With Friends -- a rip off of Hasbro's Scrabble -- is now being put out by Hasbro. Draw Something -- a knockoff of Hasbro's Pictionary -- is also now in stores.
This is the kind of thick irony that normally warrants a news story to fall into this week's "dumbest" stock moves, but this is a smart move for both companies. Last year's hottest holiday toy, after all, was an Angry Birds game that sold briskly despite a lofty price tag. Zynga's including digital goodies in the physical games, which should endear the company's social gaming brands to a younger audience.
3. Facebook ads it up
Facebook (NAS: FB) is making marketing smarter. The Wall Street Journal is reporting this week how the operator of the world's largest social networking website is sharing user data with advertisers to help them serve more effective spots.
Yes, this will be controversial, but search engines have been doing this for years. The sponsors aren't directly seeing the information. Facebook is just making it easier for companies to reach more receptive audiences with their pitches.
If you think that Facebook is doing well now -- on its way to earn about $1.2 billion on nearly $5 billion in revenue this year -- imagine what it does when it becomes even more valuable for advertisers by mining the preferences of its 955 million active users and the more than 100 billion connections that they have created on the site.
Speaking at the Value Investing Congress, Khaner feels that the new management team's approach of embracing franchising opportunities and broadening its product lines to transform Jamba into a wellness brand will pay off. He sees Jamba earning $0.50 a share by 2015, and his $7 price target on the stock by then would result in the shares nearly tripling from here.
5. Netflix makes you happy
Netflix (NAS: NFLX) bounced 11% higher on Wednesday after Citi analyst Mark Mahaney issued a bullish note.
A survey of thousands of subscribers finds that customer satisfaction is increasing with the service, suggesting that Netflix should continue to grow its business as it retains its existing members.
Shares of Netflix have been rattled on overseas losses and the perceived threats of rival streaming services, but Mahaney's results indicate that Netflix may actually be padding its dominating market lead.
Keep it coming
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The article This Week's 5 Smartest Stock Moves originally appeared on Fool.com.Rick Aristotle Munarriz owns shares of Netflix and Jamba. The Motley Fool owns shares of Facebook, Hasbro, Bank of America, and Netflix and has the following options: long JAN 2014 $20.00 calls on Facebook. Motley Fool newsletter services recommend Facebook, Hasbro, and Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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